12 Jul
Posted by: Bethany Colton in: Forex News
Trading the News: U.S. Advance Retail Sales
What’s Expected:
Time of release: 07/14/2011 12:30 GMT, 8:30 EST
Primary Pair Impact:EURUSD
Expected: -0.1%
Previous: -0.2%
DailyFX Forecast: -0.2% to 0.1%
Why Is This Event Important:
Household spending in the world’s largest economy is expected to fall another 0.1% in June after contracting 0.2% in the previous month, and the slowdown in retail sales is likely to weigh on the exchange rate as it dampens the outlook for future growth. Ind
After dipping briefly under 1.60 over the past week, the Sterling-Dollar pair snapped back sharply in late trading last night as firstly Fed Chairman Ben Bernanke refused to rule out further QE and secondly, after threatening to do so last month, Moody’s placed the US on review for a downgrade of its credit rating. Although Mr Bernanke did not outline much more than the market already knew from the minutes from the last Fed meeting, the fact that the words came from his mouth and not in text seemed enough of a reason for traders to sell the Dollar off against the Euro and Sterling, with cable jumping one and a half cents in quick time. The potential ratings downgrade came as US President Barack Obama walked out of budget talks, raising the fear that a deal on raising the US debt ceiling before the US Government runs out of money is looking increasingly unlikely. L
Trading the News: U.S. Preliminary GDP Report
What’s Expected:
Time of release: 05/26/2011 12:30 GMT, 8:30 EST
Primary Pair Impact: EURUSD
Expected: 2.2%
Previous: 1.8%
DailyFX Forecast: 2.0% to 2.5%
Why Is This Event Important:
Economic activity in the U.S. is expected to increase an annualized 2.2% in the first-quarter amid an initial forecasts for a 1.8% expansion, and the upward revision in GDP could spur a bullish reaction in the U.S. dollar as the outlook for future growth improves. A
EUR/USD
The pair finished little changed as investors continued to fret over the stability of the Eurozone following less than impressive sale of Italian BTPs. In addition to that, Friday sees the release of the EU bank stress test results which depending on the outcome could again provoke further selling of EU equities and renewed government bond yield spread widening. Going forward, investors will also be looking out for a confirmation that Italian lawmakers are fully supportive of the austerity measures amid the final spending vote on Friday. Finally, technical studies indicate that support levels are seen at 1.4118, 1.4035 and then at the 200DMA line at 1.3909. On the other hand, resistance levels are noted at the 100DMA line at 1.4285 and then at the 21DMA line at 1.4306.
GBP/USD
Despite a stronger USD, the pair finished the session higher for the 3rd consecutive day, over which the pair has gained around 1.90 cents. Read more…