The Forex Daily Digest – June 29, 2009
This week will end the first half of the year and the situation around the global economy has taken its toll with some investment opportunities. But the Forex is unique and can be used to fill in the gaps when investing gets tough; especially when equities are soft.
In the News today -
The USD gained against the JPY after China ruled out any “sudden changes” to its foreign- reserves policy. European equities increased, bouncing back from their first back-to-back weekly declines since March. The Governor of the Chinese Central Bank said China’s currency policy remains “quite stable.” He also said that the USD will strengthen as much as 17 percent in the second half of the year as the U.S. and Canada recovers from recession faster than Europe.
Meantime, The AUD and NZD dollars fell for the first time in five days after the Chinese announcement on the USD. The AUD and NZD continued their declines following Japanese reports showing industrial output increased but less than economists expected in May and retail sales declined.
The CAD rose for a second day as commodities, including gold and copper, increased in value and China reiterated its call for a “super-sovereign” currency. The loonie lost some of its gains as crude oil fell after the U.S. said the nation’s savings rate climbed to the highest level in more than 15 years.
Volatility in the EUR seems probable this week as the European Central Bank issues a highly contested interest rate decision. The ECB is confronting growing pressure to offer enhanced monetary stimulus. The Paris-based Organization for Economic Cooperation and Development (OECD) has recommended that the ECB cut borrowing costs toward zero and keep them there into 2010.
This will be an extremely busy economic week in the U.S. going into the fourth of July holiday weekend. Tuesday expect the Consumer Confidence report which the street expects will be a bit higher than last month – another indicator that the U.S. economy may have started is slow but deliberate turn around. Also on Tuesday it’s the Case-Shiller Home Price Index, and the Chicago Purchasing Managers index. Wednesday starts the second half with the release of the ADP Unemployment Change, in advance of the Jobs report on Thursday – a day early because the markets will be closed on Friday in observance of the Independence Day holiday. You can also anticipate economic numbers from Construction Spending, the Institute for Supply Management (ISM) Index, Pending Home Sales, Auto and Truck Sales and this week’s Crude Inventory numbers. Thursday it’s Non-Farm Payrolls along with Average Workweek, Hourly Earnings, and the Unemployment Rate. Also on Thursday look for the regular Initial Jobless Claims and Factory Orders.
As you can see, there are quite a few news events that will likely have an effect on your Forex trading this week – albeit a holiday shortened week for the equity markets. Make sure you’re ready when these trading opportunities show themselves. Get the extra education you need. I see that there is a PremiereTrade® Forex Training Webinar scheduled for this Thursday. The information presented can help you improve your trading skills and become a more profitable Forex trader. Adam Horak will be trading the Non-Farm Payrolls report and the information you can get from Adam in this session is extremely valuable and will, no doubt, help you understand the stance you need to take when trading such volatile news events. The price has been cut for the holiday and you can sign up by calling 1-800-785-7423; after hours you can access extension 305. Have a great trading week and I’ll see you tomorrow.
Happy Trading,
James Dicks
In the News today -
The USD gained against the JPY after China ruled out any “sudden changes” to its foreign- reserves policy. European equities increased, bouncing back from their first back-to-back weekly declines since March. The Governor of the Chinese Central Bank said China’s currency policy remains “quite stable.” He also said that the USD will strengthen as much as 17 percent in the second half of the year as the U.S. and Canada recovers from recession faster than Europe.
Meantime, The AUD and NZD dollars fell for the first time in five days after the Chinese announcement on the USD. The AUD and NZD continued their declines following Japanese reports showing industrial output increased but less than economists expected in May and retail sales declined.
The CAD rose for a second day as commodities, including gold and copper, increased in value and China reiterated its call for a “super-sovereign” currency. The loonie lost some of its gains as crude oil fell after the U.S. said the nation’s savings rate climbed to the highest level in more than 15 years.
Volatility in the EUR seems probable this week as the European Central Bank issues a highly contested interest rate decision. The ECB is confronting growing pressure to offer enhanced monetary stimulus. The Paris-based Organization for Economic Cooperation and Development (OECD) has recommended that the ECB cut borrowing costs toward zero and keep them there into 2010.
This will be an extremely busy economic week in the U.S. going into the fourth of July holiday weekend. Tuesday expect the Consumer Confidence report which the street expects will be a bit higher than last month – another indicator that the U.S. economy may have started is slow but deliberate turn around. Also on Tuesday it’s the Case-Shiller Home Price Index, and the Chicago Purchasing Managers index. Wednesday starts the second half with the release of the ADP Unemployment Change, in advance of the Jobs report on Thursday – a day early because the markets will be closed on Friday in observance of the Independence Day holiday. You can also anticipate economic numbers from Construction Spending, the Institute for Supply Management (ISM) Index, Pending Home Sales, Auto and Truck Sales and this week’s Crude Inventory numbers. Thursday it’s Non-Farm Payrolls along with Average Workweek, Hourly Earnings, and the Unemployment Rate. Also on Thursday look for the regular Initial Jobless Claims and Factory Orders.
As you can see, there are quite a few news events that will likely have an effect on your Forex trading this week – albeit a holiday shortened week for the equity markets. Make sure you’re ready when these trading opportunities show themselves. Get the extra education you need. I see that there is a PremiereTrade® Forex Training Webinar scheduled for this Thursday. The information presented can help you improve your trading skills and become a more profitable Forex trader. Adam Horak will be trading the Non-Farm Payrolls report and the information you can get from Adam in this session is extremely valuable and will, no doubt, help you understand the stance you need to take when trading such volatile news events. The price has been cut for the holiday and you can sign up by calling 1-800-785-7423; after hours you can access extension 305. Have a great trading week and I’ll see you tomorrow.
Happy Trading,
James Dicks
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