Forex Trading Review For 19/02/2010

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USD Dollar (USD)

The Dollar continue to gain versus most majors, continuing its last days rally, but skyrocketed completely after the FED raised discount rate charged to banks by 0.5% to 0.75% in order to will encourage financial institutions to rely more on money markets rather than the central bank for short-term liquidity needs. Philadelphia FED Manufacturing Index rose to 17.6 in February from 15.2, PPI rose more than the 0.8% forecast, to 1.4% but the Unemployment Claims rose to 473K. NASDAQ and Dow Jones increased by 0.69% and 0.81% respectively despite the partially disappointing date. Crude oil rose by 2.2%, closing at 79.06$ a barrel, despite the fact that oil inventories came out almost twice as much as predicted. Gold (XAU) decreased by 0.2% closed at 1116.6$ an ounce. Today, Core CPI is expected to rise from 0.1% to 0.2%.

EURO (EUR)

The Euro continues to fall versus the Dollar after the Swiss National Bank sold its currency and pushed the Euro down as well. The surprising discount rate increase in the US continued the drop of the Euro and it is expected to fall as Europe market opens and as long the EUR/USD trading below 1.3750 the momentum is totally bearish. Overall, EUR/USD traded with a low of 1.3505 and with a high of 1.3654. Today, German PPI is expected to rise from -0.1% to 0.4% and German Flash Manufacturing PMI is expected at 54.1 vs. 53.7.

EUR/USD – Last: 1.3475

British Pound (GBP)

The Pound fell to its lowest level in over a week against the Dollar as the UK recorded its first budget deficit for January since monthly data began in 1993. CBI Industrial Order Expectations came out -36 vs. -35 forecast. The GPB/USD has broken the main support at 1.5525 and still trading under the 50 moving average therefore the trend is bearish. Overall, GBP/USD traded with a low of 1.5498 and with a high of 1.5687.Today, Retail Sales are expected to be released at -0.5% vs. 0.3% prior.

GBP/USD – Last: 1.5405

Japanese Yen (JPY)

The Yen continue to weak versus the Dollar after the bank of Japan refrained from expanding its lending and asset-purchase programs. Asia markets fell by 2% after the FED announced it will increase the discount rate to 0.75%. The USD/JPY has broke the resistance at 91.40, thus a long position is preferred. Overall, USD/JPY traded with a low of 90.57 and with a high of 92.

USD/JPY-Last: 91.90

Canadian dollar (CAD)

The Canadian Dollar advanced to a 4-week high against the Dollar as the price of crude oil, the nation’s biggest export climbed as well. Moreover, Core CPI came out like the forecast at 0.1% and Foreign Securities Purchases came out better than expected at 11.23B vs. 7.21B. In the last two days the Dollar rose nicely and if it breaks the 1.05 level and stay above it the momentum will become bullish. Overall, USD/CAD traded with a low of 1.0397 and with a high of 1.0498. Today, Core Retail Sales are expected at 0.4% vs. 0.0 % prior and Leading Index is expected to weak from 1.5% to 1.1%.

CAD/USD – Last: 1.0502

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