Euro Gets Closer to 1.6000 Against US Dollar

The US dollar is again on the backfoot on Thursday from weak economic data. Latest data shows the Philadelphia Fed April Business Index came in at -24.9 vs a -15 forecast, so this was worse than general consensus, and a deterioration from the -17.4 in March. Reduced demand for new orders and shipments reflect the contraction in manufacturing activity in the Philadelphia area. This contrasts with the Empire State manufacturing report released Tuesday which showed manufacturing activity crossing over to positive territory, and is yet another sign the US is very likely to be in a recession now as a result of the housing slump. Meanwhile, US initial jobless claims for the week ended April 12 rose by 17K (10K expected) to 372K, an increase from the 355K the previous time. The 4-week moving average was almost unchanged at 376K (377 last time), which is at the highest level since Oct 2005.

Euro Talk

The Euro is stronger versus the US dollar and British pound, but still its rally is somewhat restrained by comments from important European policymakers. Euro Group’s Juncker said Thursday the Euro’s rise is “undesirable”, and ECB’s Weber said excessive forex volatility is not helpful for growth and that some forex moves are of concern. He said the G7 statement on forex speaks for itself. He also reaffirmed ECB’s commitment to anchoring price expectations. With regards to European growth, he said the outlook for Germany and the Euro area is still favourable.

Forex Trading

EUR/USD crawled slightly higher on Thursday to another record high around 1.5985. If 1.6000 is breached, we could see bullish momentum resume for the currency pair. EUR/GBP went to another high of 0.8100, but long profit-taking pulled the pair down towards 0.8000. USD/CHF bounced off expected resistance around 1.0100, and support is around 0.9920.

Friday:

Fed’s Lacker, Rosengren speak on liquidity, systemic risk 1230 GMT

Canada leading indicators 1230 GMT

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Comment by rauul

2008-04-17 20:35:12

I am trying to learn forex hoping to make some money as i am a single father of 3kids and does it run using a software.
rauul

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