Major pairs consolidating on recent technical movements…

Trading 27 mar 2012 Commentaire »
So far the major pairs are narrow trading as a result of technical movements, yet on a daily scale we watched the dollar rose against the euro and the yean; gaining from the lowest level this month against the European currency, as optimism was spread on the U.S soil after that the consumer confiden.

US Dollar Advances Against Majors

Trading 27 mar 2012 Commentaire »

During late New York trading on Tuesday, the US dollar advanced against major rivals. The greenback is currently trading near 1.3314 against the euro, 0.9056 versus the Swiss franc, 1.5948 against the British pound, 1.0455 versus the Australian dollar and 0.8202 against the NZ dollar from previous session's lows of 1.3386, 0.9019, 1.6003, 1.0560 and 0.8266, respectively.

The material has been provided by Instaforex Company - instaforex.com

*US Dollar Advances Against Majors; Now At 1.3317 Versus Euro

Trading 27 mar 2012 Commentaire »

US Dollar Advances Against Majors; Now At 1.3317 Versus Euro

The material has been provided by Instaforex Company - instaforex.com

Nasdaq Unofficially Closes down 2.22 Points, or 0.07 Pct, at 3,120.35

Trading 27 mar 2012 Commentaire »
NASDAQ UNOFFICIALLY CLOSES DOWN 2.22 POINTS, OR 0.07 PCT, AT 3,120.35 The material has been provided by Instaforex Company - instaforex.com

S&p 500 Unofficially Closes down 3.96 Points, or 0.28 Pct, at 1,412.55

Trading 27 mar 2012 Commentaire »
S&P 500 UNOFFICIALLY CLOSES DOWN 3.96 POINTS, OR 0.28 PCT, AT 1,412.55 The material has been provided by Instaforex Company - instaforex.com

U.S. dollar pares losses

Trading 27 mar 2012 Commentaire »
Investors may have overreactedto the dovish comments yesterday from the Fed's head, Mr. Bernanke reiterated that "accommodative" policies are needed as the recent improvement seen in the labor market remains unconvincing . However the overall tone hasn't changed, while there is an obvious improvemen.

EUR/USD Sell Bellow Fractal 1.3405 for March 27, 2012 (Daily Strategy)

Trading 27 mar 2012 Commentaire »

The EUR / USD pair has stopped after the ascending movement to the second weekly resistance 1.3391. Fractal is located near 1.3405 at this moment trading above the weekly W_R1 and fractal 1.3324. We believe that the euro will try again to break the 1.3390 level on the other side of the quote below 1.3330  triggering the further declines towards 1.3230 or 1.3170.

The range indicator is in overbought area and the MACD is in negative zone, breaking through the signal line from top to bottom, confirming a signal for Sell-deals.

Therefore, we recommend selling in 1.3390 with a target to Fractal (50,50,10) to 1.3244 or to 1.3230 weekly pivot point; Stop Loss is to be placed  above 1.3405 Fractal.

 

 

 

 

The material has been provided by Instaforex Company - instaforex.com

QE3 again? -Fundamental Analysis, for March 27, 2012

Trading 27 mar 2012 Commentaire »

 

The presentation of the Fed Chairman Ben Bernanke at the meeting on the labor market affected dollar on all fronts.

 

Pessimistic investors interpreted the words of Bernanke, who considers the U.S. economic recovery as too slow, that there is a possibility of new stimulus for it in QE3.

However, this possibility has been recently dismissed by some members of the FOMC at time when the last week’s macro figures with some exceptions began to show the signs of optimism.

A new stimulus for the economy can boost again the inflationary effects that can negatively influence the economy which has never faced such threats before.

With a recession that has been overcome recently, too large money injections can even change a mind of Fed that made clarifications of its policy taking the decisions on interest rates to remain them unchanged until late 2014. The previous deadline was mid-2013.

No prizes for guessing that with the sustainable economic recovery though far from being perfect; an extreme liquidity can lead millions of consumers to retake low-cost loans shortly thereafter. All this appears to be a good stimulus for the nearest future from one point, but from the other – an almost fatal trap giving that the signs of growth are some sort of artificial promoting the consumption but not production.

However, the indicators of industrial production and first of all, capacity utilization show that there is still a lot of labor force that is ready to absorb a larger share of goods and services consumption. From there you can take the Fed if they finally decide to implement a new QE.

Indeed, back to the Forex market it is evident that the leading currencies have gained strength in recent hours, remaining within a movement without clear reversal patterns.

The euro reached the level 1.3390 so far and is able to overcome it in next few hours depending on the NYSE opening where shares fly again on Monday, pushing the single currency, other currencies and commodities.

The similar situation is with the pound sterling which is near 1.60. The franc is very close to the euro and the yen is trading with no clear trend in the area of 82.80. The currencies linked to commodities that also indicated as the Canadian dollar, for example, are traded around 0.99, without leaving a narrow price range; and the Australian dollar is being traded within a new bullish movement exceeding the level 1.05.

The U.S. consumer confidence data released at 10:00 are key to the development of dollar’s trends for the nearest future. Index is expected to be located close to 71 points, i.e. in line with the February data.

 

The material has been provided by Instaforex Company - instaforex.com

Consumer Confidence in U.S. Ease to 70.2 in March

Trading 27 mar 2012 Commentaire »
The U.S. Conference Board's index of consumer confidence eased to 70.2 in March, from 70.8 ( revised to 71.6) in February, slightly up from analysts' median estimates of 70.0.

Spain will raise power costs on consumers

Trading 27 mar 2012 Commentaire »
Spain's Industry Minister Jose Manuel Soria said today that his government is willing to raise power prices by 5% to 7% by the start of April, where the cabinet is set to approve this rule on Friday, which is one of the government's efforts to cut the budget deficit.This rise will affect nearly 20 m.