The Forex Daily Digest – July 1, 2009
The U.S. invested its way to an amazing second-quarter performance even though stocks' spring recovery slowed down weeks ago. The major stock indexes managed to finish the second quarter with double-digit percentage gains. But whether the market salvages its drive in the July-September period or slows again will depend on what U.S. companies have to say in the next few weeks — not just about their own earnings prospects, but the U.S. economy's outlook too.
The JPY traded lower versus most of its major counterparts on the theory that the global recession is lessening, which is encouraging increased pressure for higher-yielding assets. Japan’s currency fell to a two-week low against the euro before a report showed U.S. consumer confidence rose to a nine-month high. The GBP earlier advanced to the strongest level in more than eight months against the USD on data that showed a rebound in British housing figures.
Economic confidence in the “euro region” increased this month more than the consensus estimate. Consumer sentiment rose all the way up to a minus 25 in June from a revised minus 28 in May. A government report Tuesday showed the number of Germans out of work increased this month but less than forecast.
The USD advanced against the euro as the S&P/Case-Shiller home-price index decreased 18.1 percent in April from a year ago following an 18.7 percent drop in the previous month. The index fell 19 percent in January, which is the most since the information began in 2001.
The CAD was bolstered as crude oil traded above $73 for the first time in eight months, increasing the appeal of commodity-linked currencies. One foreign exchange analyst in London said that rising oil prices are “providing Canadian dollar support.” The CAD lost some ground as the nation’s statistics agency reported that the Canadian economy declined in line with economists’ expectations in April. Canada’s GDP lost 0.1 percent.
The AUD and NZD dollars lost ground following the U.S. consumer confidence report. The AUD and NZD have gained in the past three months as benchmark interest rates of 3 percent in Australia and 2.5 percent in New Zealand have attracted more investors.
It’s been a fairly active week even though it will be holiday shortened both in the U.S. and Canada. Markets in Canada will be closed today (July 1st) for the Canada Day holiday, while U.S. markets will be closed on Friday for the Independence Day holiday weekend.
It’s a busy economic reporting day in the U.S. In advance of the Thursday release of the Non-Farm Payrolls report, look for the June ADP Employment report. Other economic events occurring on Wednesday include Construction Spending, The ISM Index, Pending Home Sales, Auto and Truck Sales, and the normal Wednesday Oil Inventories report.
Don’t forget about the PremiereTrade webinar on Thursday morning from 6 am to 10 am (Eastern Time), hosted by Adam Horak. He will be showing you the methods he uses to trade the Forex Market during the Non-Farm Payrolls report. The price has been cut for the holiday and if you are interested in being a part of the webinar just call 1-800-785-7423; after hours select extension 305. Have a great day.
Happy Trading,
James Dicks
The JPY traded lower versus most of its major counterparts on the theory that the global recession is lessening, which is encouraging increased pressure for higher-yielding assets. Japan’s currency fell to a two-week low against the euro before a report showed U.S. consumer confidence rose to a nine-month high. The GBP earlier advanced to the strongest level in more than eight months against the USD on data that showed a rebound in British housing figures.
Economic confidence in the “euro region” increased this month more than the consensus estimate. Consumer sentiment rose all the way up to a minus 25 in June from a revised minus 28 in May. A government report Tuesday showed the number of Germans out of work increased this month but less than forecast.
The USD advanced against the euro as the S&P/Case-Shiller home-price index decreased 18.1 percent in April from a year ago following an 18.7 percent drop in the previous month. The index fell 19 percent in January, which is the most since the information began in 2001.
The CAD was bolstered as crude oil traded above $73 for the first time in eight months, increasing the appeal of commodity-linked currencies. One foreign exchange analyst in London said that rising oil prices are “providing Canadian dollar support.” The CAD lost some ground as the nation’s statistics agency reported that the Canadian economy declined in line with economists’ expectations in April. Canada’s GDP lost 0.1 percent.
The AUD and NZD dollars lost ground following the U.S. consumer confidence report. The AUD and NZD have gained in the past three months as benchmark interest rates of 3 percent in Australia and 2.5 percent in New Zealand have attracted more investors.
It’s been a fairly active week even though it will be holiday shortened both in the U.S. and Canada. Markets in Canada will be closed today (July 1st) for the Canada Day holiday, while U.S. markets will be closed on Friday for the Independence Day holiday weekend.
It’s a busy economic reporting day in the U.S. In advance of the Thursday release of the Non-Farm Payrolls report, look for the June ADP Employment report. Other economic events occurring on Wednesday include Construction Spending, The ISM Index, Pending Home Sales, Auto and Truck Sales, and the normal Wednesday Oil Inventories report.
Don’t forget about the PremiereTrade webinar on Thursday morning from 6 am to 10 am (Eastern Time), hosted by Adam Horak. He will be showing you the methods he uses to trade the Forex Market during the Non-Farm Payrolls report. The price has been cut for the holiday and if you are interested in being a part of the webinar just call 1-800-785-7423; after hours select extension 305. Have a great day.
Happy Trading,
James Dicks
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