The Forex Daily Digest – July 21, 2009
The U.S. stock market ended the day higher but the USD took a few hits as a string of solid corporate earnings encouraged investors to jump back into high-yielding currencies and other risky assets. Some analysts believe the EUR appeared to be overextended, especially after it failed to add to its gains following a positive report on U.S. leading indicators.
The EUR and the AUD are showing an impressive run, which will ultimately leave them vulnerable to profit-taking if upcoming data or earnings don’t hit the anticipated consensus estimates.
The USD gained some ground while crude lost a bit of ground. One analyst said he expects this kind of instability for some time, as traders remain nervous about brisk moves in the commodities market. The USD fell against the EURO and the GBP. The dollar index, which tracks the USD against a basket of six major currencies, recently stood at 78.882, which is down from 79.475 in North American trading late last week.
Oil futures finished slightly higher to start the week, as USD weakness and recovering global equity markets lifted sentiment among energy traders. Still, oil prices ended well below their intraday highs and analysts warned that the fundamentals of the oil market remain weak. Light sweet crude for August delivery rose 42 cents to $63.98 a barrel on the New York Mercantile Exchange. The contract will expire today.
Fed Chairman Bernanke will be speaking before Congress today and tomorrow. He is expected to present a positive report on the economy. Investors will wait to see if he mentions thinning some of the trillions of dollars spent to help the economy through the crisis. One report today pegged the ultimate cost of the Obama stimulus plan and financial bailouts will be close to $24 Trillion. According to testimony prepared by a special inspector general expected to appear on Capitol Hill this week said the package of government bailout packages could cost $23.7 trillion.
The economic calendar is pretty sparse this week. Other than Chairman Bernanke’s presentation to Congress today you can expect absolutely no economic reports on this Tuesday. Earnings scheduled for release today include Apple, Yahoo, The Coca Cola Co., Forest Labs, Lockheed Martin, Starbucks, Merck & Co., UAL Corp, and Seagate Technology.
I hope the early morning JDfn setup programs have offered you a great deal of help to start your trading day. And, I’d also like to remind you about the brand new James Dicks Forex™ 5.0 Alerts. These alerts are sent via the James Dicks Instant Alerts Messenger which includes an advanced feature that allows mobile equipment such as laptops, PDA’s, pagers and cell phones to receive the alerts in real time. This is a huge advantage for traders that are away from the news when it happens. If you haven’t done so already, sign up for a FREE 30 day trial and see how my alert service can help you get the pips you’re looking for. Just go to www.jdforexalerts.com. Have a great day!
Happy Trading,
James Dicks
The EUR and the AUD are showing an impressive run, which will ultimately leave them vulnerable to profit-taking if upcoming data or earnings don’t hit the anticipated consensus estimates.
The USD gained some ground while crude lost a bit of ground. One analyst said he expects this kind of instability for some time, as traders remain nervous about brisk moves in the commodities market. The USD fell against the EURO and the GBP. The dollar index, which tracks the USD against a basket of six major currencies, recently stood at 78.882, which is down from 79.475 in North American trading late last week.
Oil futures finished slightly higher to start the week, as USD weakness and recovering global equity markets lifted sentiment among energy traders. Still, oil prices ended well below their intraday highs and analysts warned that the fundamentals of the oil market remain weak. Light sweet crude for August delivery rose 42 cents to $63.98 a barrel on the New York Mercantile Exchange. The contract will expire today.
Fed Chairman Bernanke will be speaking before Congress today and tomorrow. He is expected to present a positive report on the economy. Investors will wait to see if he mentions thinning some of the trillions of dollars spent to help the economy through the crisis. One report today pegged the ultimate cost of the Obama stimulus plan and financial bailouts will be close to $24 Trillion. According to testimony prepared by a special inspector general expected to appear on Capitol Hill this week said the package of government bailout packages could cost $23.7 trillion.
The economic calendar is pretty sparse this week. Other than Chairman Bernanke’s presentation to Congress today you can expect absolutely no economic reports on this Tuesday. Earnings scheduled for release today include Apple, Yahoo, The Coca Cola Co., Forest Labs, Lockheed Martin, Starbucks, Merck & Co., UAL Corp, and Seagate Technology.
I hope the early morning JDfn setup programs have offered you a great deal of help to start your trading day. And, I’d also like to remind you about the brand new James Dicks Forex™ 5.0 Alerts. These alerts are sent via the James Dicks Instant Alerts Messenger which includes an advanced feature that allows mobile equipment such as laptops, PDA’s, pagers and cell phones to receive the alerts in real time. This is a huge advantage for traders that are away from the news when it happens. If you haven’t done so already, sign up for a FREE 30 day trial and see how my alert service can help you get the pips you’re looking for. Just go to www.jdforexalerts.com. Have a great day!
Happy Trading,
James Dicks
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