US rally broken by cancelled euro summit October 25, 2011 US stocks fell yesterday on doubts European leaders can agree on a plan to end the Eurozone debt crisis, while major corporations disappointed investors with their outlooks. Though EU and Eurozone leaders still planned to hold a summit today, markets were spooked by news that a meeting by Eurozone finance ministers was cancelled. The news [...]
EU summit optimism won’t last for long October 25, 2011 FOREX conditions are choppy for euro traders, with yesterday’s moves indicative of the jittery markets. Upon the news that the Ecofin conference won’t take place, euro-dollar quickly dropped 0.6 per cent. Twitter feeds across the world were swamped with presumptions that the full emergency heads-of-government summit was also cancelled. Euro-dollar rebounded, as it became clear [...]
BET AGAINST YEN STRENGTH AT YOUR PERIL October 25, 2011 WHILE euro-dollar has taken all the spotlight recently, the yen quietly made a fresh post-war high against the dollar with dollar-yen dropping into the ¥75.00s last week. The move has elicited further cries of frustration from Japanese officials and some head scratching from speculators. The downward move in dollar-yen is especially surprising given the relatively [...]
THE TIPSTER October 25, 2011 IN RECENT days, dollar weakness has set in, allowing cable to recapture the $1.6000 level. But the gains to here seem to have come up against some resistance and volatility meaning the rally to this six week high could be coming to an end. Sellers crept into cable expecting that this trend would soon be [...]
FOREX ANALYST PICKS October 25, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short sterling-yen, Aussie dollar-dollar and dollar-Canadian dollar Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week The markets are at a crossroads. Risk appetite is pushing higher; but conviction is notably absent. Either risk trends will reverse or the markets will capitulate [...]
Bearish Aussie avoided by pandering to China October 25, 2011 THE Australian dollar has been trading around its six-week high this week, receiving a boost from encouraging data coming out of China – a country upon which its economy relies on heavily. At the same time, it has benefited from a strong commodity market. The Aussie dollar was trending around the $1.0400 area yesterday, but [...]
THREE STEPS FOR TRADING A BREAKOUT October 25, 2011 THE first step in trading a breakout is identifying support and resistance levels. These levels are identified by looking at the high and low of market price action over a specific time frame; intraday, daily, weekly, monthly or annually. A breakout occurs when the price of a currency moves above support or below resistance. A [...]
FTSE 100 hits fresh high as good China data lifts miners October 24, 2011 BRITAIN’S top share index hit a two-and-a-half-month closing high yesterday, as strong manufacturing data in China lifted miners and on hopes that plans to end the Eurozone debt crisis will be announced at a summit this week. Miners rose 5.6 per cent, contributing 34 points to the UK benchmark, as China’s manufacturing sector showed expansion [...]
Caterpillar profits fuel Wall St gains October 24, 2011 US stocks rose yesterday as a flurry of merger activity and strong earnings from Caterpillar boosted investor sentiment and kept the three-week rally intact. Equities have risen on hopes a resolution to Europe’s sovereign debt crisis is on the horizon and a reduced likelihood of a US recession after stronger-than-expected corporate results and economic data. [...]
Snoop a scoop: Economic data announcements October 24, 2011 TRADING without reference to economic announcements is a risky bet, even if they are used simply as an indication that it’s time to get out of the market. However, avoid getting bogged down in too much data – as this can obscure the useful with the useless. EMPLOYABLE DATA Non-farm payrolls, explains Angus Campbell of [...]