The Forex Daily Digest - July 13, 2009
The week begins with a number of scheduled economic reports slated for release as well as anticipation of policy moves by the various world governments in the wake of the G8 summit last week. The USD increased in value after China said the dollar may continue dominating global trade and ruled out any impulsive changes to its foreign-exchange reserves.
The dollar gained against the AUD, JPY and CHF after the deputy head of the international payment department at the State Administration of Foreign Exchange, said that the dollar may maintain its status as the world’s reserve currency. The yen fell against the NZD after a Japanese report showed retail sales dropped for a ninth month in May, reducing the currency’s attractiveness as a refuge.
Risk aversion continues to be the underlying theme in Europe today, which is offering the USD and the JPY a bit of support. Although both currencies were higher at the start, technical pressure shifted them into reverse again - leaving both generally mixed. Risk aversion was being fed by continued anxiety over what the second-quarter earnings season could bring as well as political ambiguity over elections that were called in Japan at the end of August.
A larger-than-anticipated drop in the U.S. consumer sentiment on Friday helped to assure the investment community that economic concerns are high. This was the first decrease in sentiment since February and the report suggested that the outlook for both employment and consumer spending isn't promising in the coming months.
UBS AG, one of the world’s largest currency traders, revised its long-term forecasts for the USD against the euro and the yen. A UBS analyst said she believes the dollar will trade at $1.30 per euro by year-end, $1.40 at the end of 2010 and $1.50 by end 2011. That compares with a previous estimation of 95 yen.
This week’s economic calendar is full of significant reports that could affect your Forex trading. This afternoon expect the Treasury Budget numbers for June which is expected to come in at a negative $77.5 billion. Last month they were at $33.5 billion. Tomorrow will be a busy day starting with the Consumer Price Index for June; Retail Sales for June and May’s Business Inventories report. Wednesday the Empire State Manufacturing Index is scheduled for release along with Industrial Production and Capacity Utilization for June. As the week progresses, look for the Philly Fed Index, Building Permits and Housing Starts. So, it will be an extremely busy week on the economic calendar.
I’d like to remind you about our new James Dicks Forex Alerts service. In the last seven days, the service provided over 1,100 pips! It’s time for you to check into these alerts and you can do so risk free for 30 days…try them before you buy them. These unique alerts are sent out in real time by my traders. The alerts allow you to see firsthand what they are trading and how they are managing their own trades. So get started today. Just visit www.JDForexAlerts.com and start trading the Forex market using our alerts.
Here’s hoping you have a very profitable week ahead.
Happy Trading,
James Dicks
The dollar gained against the AUD, JPY and CHF after the deputy head of the international payment department at the State Administration of Foreign Exchange, said that the dollar may maintain its status as the world’s reserve currency. The yen fell against the NZD after a Japanese report showed retail sales dropped for a ninth month in May, reducing the currency’s attractiveness as a refuge.
Risk aversion continues to be the underlying theme in Europe today, which is offering the USD and the JPY a bit of support. Although both currencies were higher at the start, technical pressure shifted them into reverse again - leaving both generally mixed. Risk aversion was being fed by continued anxiety over what the second-quarter earnings season could bring as well as political ambiguity over elections that were called in Japan at the end of August.
A larger-than-anticipated drop in the U.S. consumer sentiment on Friday helped to assure the investment community that economic concerns are high. This was the first decrease in sentiment since February and the report suggested that the outlook for both employment and consumer spending isn't promising in the coming months.
UBS AG, one of the world’s largest currency traders, revised its long-term forecasts for the USD against the euro and the yen. A UBS analyst said she believes the dollar will trade at $1.30 per euro by year-end, $1.40 at the end of 2010 and $1.50 by end 2011. That compares with a previous estimation of 95 yen.
This week’s economic calendar is full of significant reports that could affect your Forex trading. This afternoon expect the Treasury Budget numbers for June which is expected to come in at a negative $77.5 billion. Last month they were at $33.5 billion. Tomorrow will be a busy day starting with the Consumer Price Index for June; Retail Sales for June and May’s Business Inventories report. Wednesday the Empire State Manufacturing Index is scheduled for release along with Industrial Production and Capacity Utilization for June. As the week progresses, look for the Philly Fed Index, Building Permits and Housing Starts. So, it will be an extremely busy week on the economic calendar.
I’d like to remind you about our new James Dicks Forex Alerts service. In the last seven days, the service provided over 1,100 pips! It’s time for you to check into these alerts and you can do so risk free for 30 days…try them before you buy them. These unique alerts are sent out in real time by my traders. The alerts allow you to see firsthand what they are trading and how they are managing their own trades. So get started today. Just visit www.JDForexAlerts.com and start trading the Forex market using our alerts.
Here’s hoping you have a very profitable week ahead.
Happy Trading,
James Dicks
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