Friday, July 10, 2009

eToro Blog

eToro Blog

Daily Market Review July 10th, 2009

Posted: 10 Jul 2009 08:50 AM PDT

 

FX Daily

 

Written by RetailFX Dealing Desk

 

In the U.S., Initial Jobless Claims surprisingly declined to 565,000 from 617,000 the previous week, lower than the expected 610,000, as reported by the Labor Department in Washington. The figure is affected by seasonal volatility at this time of the year as workers in the auto sector are inactive while factories are being retooled to assemble new models. Wholesale Inventories fell 0.8% in May, less than the expected 1.0%, after falling 1.4% the previous month.
EUR/USD rebounded from yesterday's closing at 1.3875 to open around 1.3955 in New York. An overnight shift in risk approach weakened the Dollar in early trading hours and the unexpected Jobless Claims figure ignited the bullish momentum. After topping at 1.4072 choppy trading followed for the pair until the closing at 1.4030.

 

 The Bank of England left official interest rates unchanged at an all-time low of 0.50% and opted against extending its asset-purchasing plan for another 25 billion pounds to reach the 150 billion authorized by the British government. Sterling rallied on the news gaining the most in almost three weeks against the Dollar and consolidated in the last hours of the trading session around the 1.6350 level.

 

Gold rebounded from a two-month low as the Dollar fell against the Euro increasing demand for the yellow metal as a hedge against inflation. Gold for August delivery rose as much as 0.4% to $913 an ounce on the Comex division of the New York Mercantile Exchange.  Silver followed gaining 0.3% to $12.925 an ounce.

  

Support/Resistance

 

Currency

Support II

Support I

Spot

Resistance I

Resistance II

EUR/USD

1.3750

1.3880

1.3976

1.4050

1.42

GBP/USD

1.58

1.5890

1.6282

1.6370

1.665

USD/CHF

1.0630

1.0790

1.0823

1.0950

1.1095

USD/JPY

90

91.5

92.88

94

96.5

USD/CAD

1.1330

1.1410

1.1615

1.1735

1.1975

AUD/USD

0.76

0.7690

0.7809

0.8025

0.8105

EUR/GBP

0.8450

0.8535

0.8583

0.8710

0.8850

NZD/USD

0.6110

0.6230

0.6299

0.6370

0.6440
 

EUR/USD DAILY

 

rrr

EUR/USD continues to trade sideways with the 1.38 support area succeeding to hold. After moving downwards for the last few days the pair bounced back to test the 1.40 level even though after some choppy trading it failed to stay above that line. In any case, the rebound from support levels may be a signal that a new bullish cycle is next to come.

 

 

 

 

EUR/JPY DAILY

ttt
 After the cross fell to levels not seen since mid-May, we saw a corrective inside day yesterday with a top at 130.80. The primary trend continues to be bearish, considering the breaking of the upwards trend line three days ago. The next reliable support should arise around the 126 area.

 

 

 

 

 

Daily Events

Time(GMT)

Country

Event

0:00

International

G8 Meetings

6:00

Germany

Wholesale Price Index (MoM), (YoY)

8:30

UK

Producer Price Index - Input (MoM), (YoY) (June)

8:30

UK

Producer Price Index - Output (MoM), (YoY) (June)

11:00

Canada

Net Change in Employment (June)

11:00

Canada

Unemployment Rate (June)

12:30

US

Import Price Index (MoM), (YoY) (June)

12:30

Canada

International Merchandise Trade (May)

12:30

US

Trade Balance (May)

14:00

US

Consumer Sentiment Index (Jun)

 

 

 

 

 

 

 

 

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Posted by Abdelrahman Ellithy at 5:44 PM

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