Calendar

Tue
Jan 29
12:30am AUD NAB Business Confidence
2:00am USD President Bush Speaks
7:15am CHF Trade Balance
9:00am EUR Current Account
9:00am CHF Consumption Indicator
11:00am GBP CBI Distributive Trades Realized
1:30pm USD Durable Goods Orders m/m
1:30pm USD Core Durable Goods Orders m/m
1:30pm CAD Business Conditions Orders
2:00pm USD National HPI Composite-20 y/y
3:00pm USD Consumer Confidence
9:45pm NZD Building Consents m/m
11:50pm JPY Industrial Production m/m

EUR USD

Short term (Intraday)
1,4760. EUR USD is in a consolidation after the last bullish movement. EUR USD is in a range between 1,4660 and 1,4800. The volatility is low. Bollinger bands are flat. ForexTrend 1H (Mataf Trend Indicator) is in a bullish configuration. 4H ForexSto (Modified Stochastic) indicate a bullish pressure on EUR USD. The consolidation should continue. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances
1,4800 - 1,4900
Supports
1,4750 - 1,4670

Major Market Makers

Durables orders on fire...

The U.S. department of commerce shocked the markets today by announcing a surprising huge incline in durable goods' orders for the month of December, beating November's reading and analysts expectations, giving markets the right treat for hectic speculation in the FOMC's call.
Durable goods order skyrocketed in the month December, recording an increase of 5.2% after a revised 0.5% increase in November, mainly due to aircraft sales, but at the same time durable goods orders excluding transportations also climbed by 2.6%, following a decline of 0.7% in November, and beating analysts' expectations of a loss of 0.1%, the numbers gave the stock market and the U.S. currency some strength as preparing for the FOMC rate decision tomorrow.

Transportation orders increased alone by 11.3%, while the incline in the orders that excludes transportation was mainly due to extreme demand on computers, communications and defense equipments that jumped 81% in December, the markets saw durable goods inline as a relief especially that on a certain level it contributes to the country's GDP which is scheduled to be released tomorrow for the 4th quarter 2007.

The dollar is very vulnerable nowadays to any report or any adjustment in the interest rate outlook as a result of good or bad news from the economy, that’s why we see a great deal of ups and downs in the exchange rates so far this week, all hoping that by the end of the week this cloud to pass, while the horizon and the future is more clear for traders and investors.

The conference board and in a separate report declared that consumer confidence did actually fall in January to 87.9 from a revised reading of 90.6 in December, showing that confidence started to drop with the new year especially with the end of the holiday season in the markets, yet last month's revision gave the dollar new pricing as a correction to the false pricing it had from December.

That’s all for today dear reader, the data for today mixed it up a little bit a head of the GDP data and the FOMC decision tomorrow, and instability is the best word to describe markets nowadays, wait until tomorrow and see, what the important number are going to tell you about the state of the world's largest economy...

Technical Analysis

EUR/USD - Euro Dollar
Short term (Intraday)
1,4676. EUR USD is in a consolidation after the last bullish movement. The volatility decreases. Bollinger bands are tightened. Oscillators are neutral. The consolidation should continue. The price should continue to move in 1,4650 / 1,4800 range. If the support is broken then the target will be 1,4550.

Resistances
1,4705 - 1,4780
Supports
1,4650 - 1,4550

Major Market Movers

HI , today is mondey the beginning of the week , so lets see what Major Market Mover say today !!!!!

Before the Storm…
The week has come to an end, a week that was supposed to be calm from the beginning till the very end, but Mr. Bernanke and his pals had another idea, turning the markets up and down by cutting rates in an unusual meeting, while now we are trying to be ready for next week...
Today might be just the calm before the storm, it’s the perfect end for a week that lacked major economical fundamentals, and the perfect staging area before we get into a very busy week, the long waited week, where we have GDP reading for the fourth quarter 2007, the FOMC rate decision, and the jobs report at the end of the week, not mentioning some important inflation indices like the PCE and all spending data, the ISM indices and the ADP employment report. Next week will be an important determinant for market directions and will set the path for the U.S. dollar once and for all.

Today we are gonna have to wait and see, today is the day for preparation and holding breaths, it's the day for building theories and ideas, all arming with all weapons to fight in the great battle next week, so you might as well dear reader get prepared and fully armed.

Currencies Update

And…Once Again!

(25-01-2008 12:30 GMT) Headlines in the market are again the rebound in world equities and the coming back of risk appetite this fundamental quiet day, investors took the advantage to move the market as there are still no influencing data, and their incentive was driven by the drafted out fiscal stimulus that will help the US economy abide recession.

The euro is trying to build up its solid base above $1.47s to then be able to head once more to its upside set targets breaching by that the long awaited $1.50 levels, now the weak American eagle has helped set the path the one left is European fundamentals; the euro lost some of its upside vigor keeping the high intact at 1.4777 in the Asian session to set the low at 1.4697 and now trading around 1.4720s.

The royal currency has bounced from very low levels seen at around 1.9330s after entering oversold areas; the pound started the day trading above $1.97 the pound fetched a high of $1.9846 and a low of $1.9743. The pound was supported by the stance seen from the BoE as it dismissed any chance in the market of substantial easing as elevated inflationary levels will confine their ability to mitigate economic slowdown as they now must start drafting their contingent plan.

The Japanese yen was driven to weaken today on wake of carry trades comeback as investors took the advantage ahead of key US data next week that they fear might confirm a recession. The pair traded within the upside channel to set the high at 107.88 while the lowest was set at 106.84.

The day is still not over as the US markets join the flow in a few and then the scenario might differ as well to squaring positions ahead of the weekend so stay tuned the week has yet come to an end…

Major Market Movers

Before the Storm…

The week has come to an end, a week that was supposed to be calm from the beginning till the very end, but Mr. Bernanke and his pals had another idea, turning the markets up and down by cutting rates in an unusual meeting, while now we are trying to be ready for next week...
Today might be just the calm before the storm, it’s the perfect end for a week that lacked major economical fundamentals, and the perfect staging area before we get into a very busy week, the long waited week, where we have GDP reading for the fourth quarter 2007, the FOMC rate decision, and the jobs report at the end of the week, not mentioning some important inflation indices like the PCE and all spending data, the ISM indices and the ADP employment report. Next week will be an important determinant for market directions and will set the path for the U.S. dollar once and for all.

Today we are gonna have to wait and see, today is the day for preparation and holding breaths, it's the day for building theories and ideas, all arming with all weapons to fight in the great battle next week, so you might as well dear reader get prepared and fully armed.