Forex Trading Market Review July 12 2012

Jul 15 • Market Reviews • 2009 Views • Comments Off on Forex Trading Market Review July 12 2012

Asia stock benchmarks fell Thursday, as hopes of fresh stimulus efforts from the U.S. diminished, and investors remained cautious ahead of key growth data from China on Friday on head of BOJ decision.

On the economic front, there are no major data releases domestically and, from Germany whole sale inventory data which is expect to keep pressure on Euro and from U.S Initial jobless claims is expect to support Dollar to gain.

The market is continuing its losing streak, as daily factors like the euro and Asian equities are still trading lower. The euro has declined to $1.2240, while all Asian equities are trading down by more than half a percent. Going ahead, the weakness is expected to continue as data releases from the euro-zone in the form of WPI and industrial production are expected to add pressure to the euro during the day.

Nonetheless, economic indicators from the U.S are also likely to show some weakness with unemployment numbers due later today.

Euro Dollar:

EURUSD (1.2243) the euro continues its decline, as markets have no reaction to the announcement of the funds for Spain at the end of July.  With the German courts reviewing the constitutionality of the ESM and the funds a stop gap measure to help reduce Spain’s soaring borrowing costs the euro remained unaffected.

The Great British Pound

GBPUSD (1.5514) dipped with little eco data to support the GBP and overall negative sentiment, the market is at the whim of the USD, which is now trading at the 83.45 level on the DX.

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Asian –Pacific Currency

USDJPY (79.53) with little help from the FOMC minutes and the BoJ rate decision and statement due today, the pair remain in their tight range near the 79.50 range.

Gold

Gold (1571.65) continues to weaken with little support for the euro and no support from the FOMC meetings, gold is slowly returning to its downward trend.

Crude Oil

Crude Oil (85.85) EIA inventories showed a drop in stock by 4.3million barrels, above earlier projections, but this was offset somewhat by a drop in inputs and imports. With global growth shrinking and lower demand, oil is expected to meander its way back to the 80.00 level

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