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| | Demo|Live|Free Practice  Daily Newsletter: 16/07/2009
By Loic Bondiguel - ACM Advanced Currency Markets, Geneva, Switzerland | | | | Q2 Earnings season spurs risk appetite | News and Events: The main contributor to Wednesday's trading was, once again, the resurgence of risk appetite as investor confidence soared.
Better than expected Empire Manufacturing, industrial production, and CPI data, and a lack of disappointing earnings helped push US equities up 3% and weakened the dollar against most of the majors, with the exception of the yen.
The 3% gain in stocks transmitted quickly to risk currencies which had a third successive good day (see below) and now having fully erased their losses of the last two weeks thanks, partly, to the FOMC minutes which were less downbeat than previously while US economic data releases were solid.
With the Dollar and Yen weakening sharply across the board, commodity prices leapt higher with oil up almost 4% alongside copper with a similar rise.
The Far East session today proved to be a little more active than the previous one as risk appetite took a small step backwards after the announcement that talks between the US authorities and CIT Group had ended with no agreement to support the US lender. This caused a little unease amongst traders and some profit taking ensued.
EUR/USD slipped below 1.4100 and a macro fund was seen pushing it further towards 1.4070. We heard talk of a large barrier at 1.4200 with sizeable offers trying to protect it from 1.4150.  Read Today's Key Issues and The Risk Today
| Resistance and Support: | EURUSD | GBPUSD | USDJPY | USDCHF | | 1.4200 | 1.6580 | 95.50 | 1.0930 | | 1.4145 | 1.6490 | 94.60 | 1.0875 | | 1.4100 | 1.6410 | 94.30 | 1.0810 | | 1.4072 | 1.6358 | 93.62 | 1.0770 | | 1.4030 | 1.6260 | 93.00 | 1.0730 | | 1.3930 | 1.6205 | 92.20 | 1.0670 | | 1.3870 | 1.6145 | 91.00 | 1.0620 | | S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot | | Quick access to our 5 previous newsletters: |
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