This article will discuss several tidbits of news relevant to Forex worldwide. This includes information from USD, EUR, JPY, commodities, etc. The goal of this article is to provide sound but brief information to traders.
USD Bearish Last Week and Probably This Week
Last week the USD was bearish. On Monday, September 17, 2012 it closed at its lowest since February of this year. This was because of “a new ground of monetary easing” designed to boost the US economy in the long run. As expected the short-term results was traders looking elsewhere for profits. This week, the USD is still expected to maintain its bearish trend. Traders should watch out for the following US news as indicators:
- Data relevant to existing home sales as well as building permits
- Weekly unemployment claims
- Philly Fed Manufacturing Index
EUR/USD Still above 1.31
Last week there were two things going for the EUR. First was the approval of the ECB’s plan to boost Euro zone economic recovery. Second was the US with its new ground of monetary easing. This resulted in a good closing week. This week Traders have to pay special attention to:
- Italian trade balance
- EU labor costs
- EU current account
- French auction of short term maturities
- Germany’s release of economic sentiment figure
- ECB President Draghi’s speech expected on Thursday
Last week Gold was able to close with significant gains. On the start of this week the same was able to hold onto some of those gains. This is the direct result of the weakness of the USD and the generally lackluster performance of the EUR. At the close of the trading day (Monday, September 17, 2012) Gold was able to close at a six and a half month high with a price of nearly $1,778 an ounce. This week traders should pay special attention to the following indicators:
- EURO zone economic data
- Germany’s release of key economic figures
Bear in mind that Germany is the EU’s largest economy. If figures fall below the expectations then the gains from last week can easily be reversed. On the other hand, if figures go as expected or even better than expected then expect traders to push for Gold and EUR.
Crude Oil at a Four Month High
At the close of the trading day last Friday crude oil traded briefly at over $100 a barrel. This was an indication of investors shifting their funds from the USD to commodities. At the close of this trading day crude oil went back to just below $99 a barrel. Whether or not this trading week will result in additional gains or reverses will depend on indicators that are virtually the same as the abovementioned US indicators .Which points out to the fact that the US demand for crude will greatly affect the same. In other words, a high expectation of US demand will fuel price increase while a low expectation of US demand will result it reversal.