Dec 21, 2011

Forex Crunch USD/JPY: Trading the US Unemployment Claims

Forex Crunch USD/JPY: Trading the US Unemployment Claims


USD/JPY: Trading the US Unemployment Claims

Posted: 21 Dec 2011 03:32 AM PST

The US Unemployment Claims indicator is published weekly, and measures the number of people filing for unemployment for the first time during the previous week.  A reading which is higher than the market forecast is bullish for the yen.

Here are all the details, and 5 possible outcomes for USD/JPY.

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The ECB flashes the cash

Posted: 21 Dec 2011 03:07 AM PST

Today the ECB will once again push new boundaries in the provision of market liquidity by offering loan of three years (with option to repay after one year). The market is expecting nearly EUR 300bln to be taken up, in return for suitable collateral form the participating banks.

It's been pointed out before that this will aid the liquidity crisis, but not the solvency crisis that Europe is currently facing.  It was certainly the case when the ECB started offering substantial long-term liquidity in '09, there was something of an ECB carry trade going on, with banks borrowing cheap funds and investing elsewhere. Video:

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EUR/USD Sharply Sells the Fact After ECB LTRO

Posted: 21 Dec 2011 02:58 AM PST

EUR/USD is undergoing a sharp reversal, making a quick drop of over 100 pips. This move came after a move up following the announcement of the ECB about its huge 3 year LTRO operation. The euro strengthened towards the release and accelerated on it.

There was a big buildup that culminated with an even bigger-than-expected outcome. But then the market “sold the fact”.

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EUR/USD Dec. 21 – Enjoying High Ground After the Grand ECB Operation

Posted: 21 Dec 2011 02:17 AM PST

Euro dollar is on high ground, breaking the critical line it lost last week. that was a huge success: over 489 billion euros. This  is an indirect form of QE, which helps sovereigns by encouraging banks to buy sovereign debt. Will this operation provide a long term ssalvation? Or is it a move upwards before another fall? We have an interesting US figure today as well.

Here's an update on technicals, fundamentals and what's going on in the markets.

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British Government Posts A High Deficit in November

Posted: 21 Dec 2011 01:50 AM PST

The British central government and local governments posted a deficit of 15.2 billion in November, a bit less than expected, but five times the deficit seen in October. 

The current coalition government has vowed to bring down the high debt pile that the UK has. GBP/USD is unchanged at around 1.5725.

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Forex Daily Outlook December 21 2011

Posted: 20 Dec 2011 02:00 PM PST

Existing Home Sales in the US and MPC Meeting Minutes in the UK are the main events today.  Here is an outlook on the market-movers awaiting us

In the US, Existing Home Sales, monthly report to value the inhabited houses that were sold on the last month (the previous month (not including new building), rise from 4.97M on November up to 5.04M is predicted now.

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NZD/USD:Trading the New Zealand GDP

Posted: 20 Dec 2011 11:28 AM PST

The Gross Domestic Product (GDP), is an important measurement of the production and growth of the economy. Analysts consider GDP, which is released quarterly, one of the most significant indicators of economic activity.  A reading which is better than the market forecast is bullish for the New Zealand dollar.

Here are all the details, and 5 possible outcomes for NZD/USD.

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30 Sites to Thank and Recommend

Posted: 20 Dec 2011 07:01 AM PST

The holidays are also a time of giving. I would like to take the opportunity to thank and recommend sites / blogs that are very useful for forex traders. Here are my 30 picks.

With some of these websites, I have different kinds of collaboration which I’m happy with, and it’s also an opportunity to thank them. Others are great sources of information for anyone interested in foreign exchange trading from various points of view.

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US Housing Figures Add to Positive Signs, General Optimism

Posted: 20 Dec 2011 05:42 AM PST

US building permits exceeded expectations and rose to an annual pace of 0.68 million. Early expectations stood on 0.63 million. This came on top of a small downward revision of last month’s pace from 0.65 to 0.64 million.

US housing starts climbed from 0.63 to 0.69 million (annualized), better than 0.64 that was expected. EUR/USD is moving higher, crossing 1.31.

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