The Forex Daily Digest – July 24, 2009
The Dow crossed the 9,000 mark at the close yesterday, pushing the USD lower against all of the higher yielding currencies. Although earnings have been mixed during this second quarter season, risk appetite apparently has returned. Moderately strong U.S. economic data and the Bank of Canada's comment that the country's recession is ending during this quarter has added to the optimistic tone in the currency market.
If the Bank of Canada is right and their nation’s recession is coming to an end, the U.S. probably isn’t too far behind since Canada's recovery is dependent upon a U.S. recovery. But, realistically, the chances of that happening in the next 45 days are doubtful.
Traders have been talking about the DJIA hitting the 9,000 mark for a number of weeks now and it finally happened on Thursday. Initial Jobless claims were in line with the consensus expectations, while existing home sales were up 3.6 percent – well ahead of expectations.
The USD was mixed, rallying sharply against the JPY on talk of investment outflows from Japan while falling against the Canadian dollar and other risk-sensitive currencies as stocks and commodities advanced. The EUR gained, reaching a seven-week high before losing its gains to close modestly lower against the USD. The USD's strong showing against the JPY came after talk in the market of stronger demand in Japan for foreign-denominated investment trusts.
The GBP was the hero in trading yesterday rising to within a few points of the 1.6550 mark. It found some solid ground by a much improved UK Retail Sales report and the fourth consecutive increase in BBA mortgages. Taking a closer look at the UK numbers; Retail Sales was up 1.2% against 0.3% expected by the market. Sales were helped by warm weather last month and genuine discounts. Separately BBA mortgage applications increased to a 15 month high giving us another signal that UK housing market seems to have stabilized.
Today you can expect only one major economic report and that’s the July revision of the Michigan Consumer Sentiment. It was reported at 64.6 percent and the market is expecting it to rise to at least 65.0 percent. Earnings today include Black & Decker, First Financial Holdings, Schlumberger, United Community Banks, and Wilmington Trust.
I sincerely hope you had a profitable trading week. Pay close attention to the events of the day and follow the daily setups offered by our traders on the James Dicks Forex Network. Every morning and throughout the day, our seasoned traders will guide you through what they are seeing and explain how the various currency pairs are trading. Take advantage of their years of experience and make sure the pips come your way.
Happy Trading,
James Dicks
If the Bank of Canada is right and their nation’s recession is coming to an end, the U.S. probably isn’t too far behind since Canada's recovery is dependent upon a U.S. recovery. But, realistically, the chances of that happening in the next 45 days are doubtful.
Traders have been talking about the DJIA hitting the 9,000 mark for a number of weeks now and it finally happened on Thursday. Initial Jobless claims were in line with the consensus expectations, while existing home sales were up 3.6 percent – well ahead of expectations.
The USD was mixed, rallying sharply against the JPY on talk of investment outflows from Japan while falling against the Canadian dollar and other risk-sensitive currencies as stocks and commodities advanced. The EUR gained, reaching a seven-week high before losing its gains to close modestly lower against the USD. The USD's strong showing against the JPY came after talk in the market of stronger demand in Japan for foreign-denominated investment trusts.
The GBP was the hero in trading yesterday rising to within a few points of the 1.6550 mark. It found some solid ground by a much improved UK Retail Sales report and the fourth consecutive increase in BBA mortgages. Taking a closer look at the UK numbers; Retail Sales was up 1.2% against 0.3% expected by the market. Sales were helped by warm weather last month and genuine discounts. Separately BBA mortgage applications increased to a 15 month high giving us another signal that UK housing market seems to have stabilized.
Today you can expect only one major economic report and that’s the July revision of the Michigan Consumer Sentiment. It was reported at 64.6 percent and the market is expecting it to rise to at least 65.0 percent. Earnings today include Black & Decker, First Financial Holdings, Schlumberger, United Community Banks, and Wilmington Trust.
I sincerely hope you had a profitable trading week. Pay close attention to the events of the day and follow the daily setups offered by our traders on the James Dicks Forex Network. Every morning and throughout the day, our seasoned traders will guide you through what they are seeing and explain how the various currency pairs are trading. Take advantage of their years of experience and make sure the pips come your way.
Happy Trading,
James Dicks
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