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Strong US data fails to strengthen the Dollar, as Eurozone CPI is stronger than expected. Looking ahead US CPI scheduled for release. CURRENCY TRADING SUMMARY – 16 MARCH 07 (23:30GMT)
- U.S. Dollar Trading (USD) was mixed against all majors last night mainly on the back of investors remaining concerned over the sub-prime mortgage market and its effect on the wider economy. In positive news, February U.S. inflation data and January U.S. capital inflows were higher than expected. But they were not enough to diminish investor focus away from the equity market for any indication of investor inclination for risk. In US share markets, the NASDAQ was up 6.96 points (0.29%) and the Dow Jones was also up 26.28 points (0.21%). Crude Oil rose by US$0.10 a barrel to US$57.61. Looking ahead, further key data is set for release out of the US in the form of the CPI, with markets expecting a figure of 1.8% slightly higher than the previous 1.7%.
- The Euro (EUR) strengthened against the dollar on the back of strong inflation data out of the region. Core CPI came in at 0.4% stronger then expected. Overall, the Euro traded with a low of 1.3193 and a high of 1.3253 before closing the day at 1.3232 in the New York session.
- The Japanese Yen (JPY) fell against the USD, GBP and EUR higher due to U.S. stock indexes reserved gains. Lately, low yielding currencies have been linked to the stock moves in an indirect manor. Overall, the JPY traded with a range of a low 117.02 and a high of 117.78 before closing the day at 117.62 in the New York session.
- The Sterling (GBP) traded in a narrow range before firming slightly against the USD largely on the back of a weaker USD. Overall, the GBP traded in a range of a low 1.9309 and a high of 1.9392 before closing the day at 1.9362 in the New York session.
- The Australian Dollar (AUD) strengthened on Thursday, shrugging off a worse than expected unemployment figure at 4.6%. Overall the AUD traded within a range of a low 0.7840 and a high of 0.7897 before closing the day at 0.7895.
- Gold (XAU) rebounded by US$1.90 an ounce to US$649.00 on the back of uncertainty in global markets.
- The Czech Crown (CZK) The Czech crown firmed to near two-month highs versus the Euro on buying led by U.S. investment banks and growing market confidence that the economy was sustaining a robust pace of expansion. The Crown traded with a low of 21.164 and a high of 21.325
TECHNICAL COMMENTARY
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| This article provides an overview of the factors affecting the the leading currency pair: Euro-Dollar exchange, commonly expressed as EUR/USD. The Euro to Dollar exchange rate is the
price at which the world demand for US Dollar equals the world supply for Euro. Regardless of geographical origin, a rise in the world demand for Euros leads to an appreciation of the Euro. |
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Technical analysis is built on three essential principles:
1. Market action discounts everything This means that the actual price is a reflection of everything that is known to the market that could affect it, for example,
supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.
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