Wednesday’s Forex Trading Outlook

USD Dollar (USD)

The Dollar dropped in early Europe session reaching near the lowest in 2 weeks versus the Euro on reduced demand for safety, but rebounded after a US economic reports showed that consumer confidence climbed more than forecast and national home prices increased for the first time in three. NASDAQ and Dow Jones rose by 0.31% and 0.32% respectively. Crude oil fell by 3.1% closing at 72$ a barrel on gloom estimates regarding the US deficit. Gold (XAU) strengthened by 0.30% closed at 944$ an ounce. Today, Durable Goods Orders is expected to remain at 3.3% vs. -2.5% previously and New Home Sales is expected to climb to 393.00K vs. 384.00K prior.

EURO (EUR)

The Euro rose earlier versus the Dollar but closed almost unchanged on speculation that the German IFO report today will show the fifth monthly expansion in business confidence and that government spending helped lift Germany out of its worst recession since World War II. Overall, EUR/USD traded with a low of 1.4252 and with a high of 1.1.4361. Today, German IFO Business Climate Index is expected at 89.10 vs. 87.30 prior.

EUR/USD - Last: 1.4315

British Pound (GBP)

The Pound weakened versus the Dollar trading with a low of 1.6330 and with a high of 1.6444 after consumer confidence in the US showed an unexpected growth. The Pound also dropped against the Euro approaching the lowest level in 11 weeks, on speculation business sentiment in Germany will point to an economic recovery in the region.

GBP/USD - Last: 1.6340

Japanese Yen (JPY)

The Yen traded on a volatile note against the Dollar and weakened again the Pound and the Euro after Japan’s exports fell for a tenth straight month in July, an indication that overseas demand won’t be strong enough to sustain the nation’s recovery from its worst postwar recession. Overall, USD/JPY traded with a low of 93.79 and with a high of 94.62. Trade Balance came out worse than expected at 0.19T vs. 0.30T forecast.

USD/JPY-Last: 94.15

Canadian dollar (CAD)

The Canadian Dollar declined for the first time in six days, falling from the strongest level in almost three weeks as commodities weakened and a central bank official said the currency’s strength is a risk to growth. Overall, USD/CAD traded with a low of 1.0718 and with a high of 1.0869.No economic data expected today.

CAD/USD - Last: 1.0845

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Comment by trade your way to financial freedom

2009-08-27 08:46:53

Hey, you have just provided me a comprehensive update on forex trading…Looking forward for more updates.

Thanks a lot!

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