Event risk will be spread throughout the forex markets this week, with US manufacturing and services sector data along with US non-farm payrolls likely to add to evidence that the country is facing recession, while rate decisions from the Bank of England and European Central Bank are forecasted to yield rate cuts?
The US dollar lost ground to the Euro and the British Pound at the open of the trading week as easing risk perception saw traders moving money out of safe-haven assets.
Read more: Identifying Trades with DailyFX 11.03.08 (Daily FX)
by Johan Kriek (jkriek@fxinstructor.com) Key Notes: – US Presidential elections closely watched this week – BoE, ECB decides on interest rates this week – NFP closely watched on Friday Although the markets are range bound, we saw sharp rallies in the stock markets last week as the Fed and BoJ cut rates. Nevertheless, the overall trend is still bearish
Mon, 03th of November, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD continued it’s bearish momentum on Friday. The pair bottomed at 1.2666 and closed at 1.2722 .
The Swiss Franc will be under pressure next week as economic data continues to weaken, but technical positioning is supportive of near-term strength against the US dollar.
The New Zealand dollar rallied for three consecutive sessions for the first time since September, and despite the minor pullback on Friday, the NZDUSD picked up 300+ points for the week.
The Australian Dollar would gain over 850 pips as the RBA intervened to prop up the currency. Next week could determine the medium term trend for the currency as retail sales, inflation data and a RBA rate decision are on tap.
Volatility in forex markets has surged to unprecedented levels. In the words of one analyst, "Moves in the currency markets witnessed during just a few hours of trading…’are typically what we see in a quarter.’ " The currencies of both emerging market countries and industrialized nations have been battered indiscriminately, as investors have fled to locations perceived as less risky, namely the US and Japan
After touching 1.3290, EURUSD pulls back to as low as 1.2745 level.
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