Euro Strengthens On First Trading Day

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Euro Strengthens On First Trading Day

By Grace Cheng on January 2, 2008 | More Posts By Grace Cheng | Author's Website

Boy, am I glad I didn’t have to drag myself to go to work on the 2nd day of the new year; I rely on my computers for that. But if you dread going to your office after the gone-too-fast holiday season, here is a little motivation from me: If you want to ditch your 9-5 unchallenging job, have more time to see the world and want to be a successful entrepreneur,

forex trading is one path you could explore.

If I can do it, so can you, and I’m just 27.

One of my goals this year is to inspire and teach even more people the skills that have enabled me to live my dreams.

In the first trading day of 2008, the US dollar slipped against the Euro and Swiss franc as profit-taking action subsided.

Latest update at 1520 GMT:

US ISM manufacturing index fell to 47.7 (50.5 expected) in December, the lowest reading since April 2003, from
50.8 in November. This marks the first contraction after 10 straight months of growth. Bad for USD.

If EUR/USD stays above 1.4560-70, it may prevent Euro bears from getting their way. Its next upside target is around 1.4750, then 1.4780-1.4800.

France’s minister for European Affairs Jean-Pierre Jouyet said that the strong Euro strongly protects Europeans’ purchasing power, which means more bang for their Euro as they buy oil and other stuff from outside Europe.

This tone is somewhat different from what other French officials have adopted in recent months.

The current economic and geopolitical (instability in Pakistan after Bhutto’s death) climate favours USD weakness.

Nymex crude oil for February delivery rose above $98 a barrel after militant attacks in Nigeria, Africa’s biggest crude producer, increased concern that violence will affect oil production.

Keep in mind that 2008’s first NFP release will be this Friday, which will probably be the biggest forex mover this week. You could try out my News Straddling Strategy then.

PS. Got any questions about trading or just want to air your thoughts? The ForexVibes Forum is the place to do so! You can post and comment on anything that is related to forex trading, start new topics, reply to existing threads, lend a hand to those who have questions, ask questions, or simply make some new friends who are in the trading scene. Click here to go to the Forex Vibes Forum!