AdvancedCurrencyFX
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Stocks trading in and around where they started in Europe this morning, the Dow finishing slightly up at session end yesterday. Oil and gold still falling during European session giving the lift back to the dollar. Now trading at 1.6220 (from a high of 1.6375 as of yesterdays trading session) for cable and 1.3880 for eurodollar (highs yesterday of 1.4070). UK PPI figures mixed, up on input, down on output albeit not really affecting direction. The strength of the dollar is most certainly being driven by the earnings figures out next week which are expected to disappoint. The 'safe haven' Yen also trading higher across the board again through worries for next weeks earnings. G8 meeting ending today, no surprises there, global recession to be continuing for the foreseeable future, certainly until the end of the year and into Q1 of 2010. Our prediction that the dollar will strengthen over the summer, retrace during Q4 allowing the stocks to head back towards 9000 still very much in line with the correlation of stocks and dollar at the back end of the year into 2010 still very much in play.
Cable trading this morning through the 1.6230 area and onto 1.6115 at time of writing. If continues, look for a move towards 1.6180 ahead of 1.6150 (38.2% ret level for the week). Resistance at 1.6250 ahead of 1.6275/00. With stocks, oil and gold along with the G8 meeting outcome all showing signs of gloom, The strengthening of the dollar seems to be the only direction. Only saving grace for the risks will be the continuation of stock buying during the US session this afternoon, but with the earning forecasts for next week to be adverse, unlikely.
Eurodollar this morning plummeting albeit finding support at the 1.3880 level from highs yesterday of 1.4075. As with cable, nothing to stop the fall as earnings next week. The Yen also gaining ground against the single currency, along with the pound. Should we break and hold 1.3900, expect a move back towards 1.3880 ahead of 1.3840 (lows of the week). Resistance at 1.3930 ahead of 1.3955/60 and 1.3980. US session only saving grace right now for the Euro. Down some 200 points since the highs of yesterday, good selling opportunity should we get a retracement back to 1.3950/60.
Matt James
Advanced Currency FX
Cable trading this morning through the 1.6230 area and onto 1.6115 at time of writing. If continues, look for a move towards 1.6180 ahead of 1.6150 (38.2% ret level for the week). Resistance at 1.6250 ahead of 1.6275/00. With stocks, oil and gold along with the G8 meeting outcome all showing signs of gloom, The strengthening of the dollar seems to be the only direction. Only saving grace for the risks will be the continuation of stock buying during the US session this afternoon, but with the earning forecasts for next week to be adverse, unlikely.
Eurodollar this morning plummeting albeit finding support at the 1.3880 level from highs yesterday of 1.4075. As with cable, nothing to stop the fall as earnings next week. The Yen also gaining ground against the single currency, along with the pound. Should we break and hold 1.3900, expect a move back towards 1.3880 ahead of 1.3840 (lows of the week). Resistance at 1.3930 ahead of 1.3955/60 and 1.3980. US session only saving grace right now for the Euro. Down some 200 points since the highs of yesterday, good selling opportunity should we get a retracement back to 1.3950/60.
Matt James
Advanced Currency FX
