FOMC cut rates as focus shifts to Fed speeches, Durable Goods and Euro CPI
08/10/07
last week’s currency trading review
The Dollar all focus was placed on Fridays NFP report, as markets awaiting eagerly to verify if the Jobs markets warrants further rate cuts out of the U.S. in light of recent market turmoil. With forecast at 94k new jobs, the figure surprised on the upside with 110k jobs created. Further more, an upward revision of the previous added to further USD strength, although traders returned to bets against the dollar shortly after. The Euro the biggest event in the EZ week was undoubtedly the ECB rate announcement in which rates were kept on hold with relatively dovish comments by Trichet during his press conference. Euro closed last week at 1.4137 having opened at 1.4262. The Japanese saw a positive Tankan survey do little to c
The forex trading week preview
In the States Minutes of the Sept 18 FOMC meeting (Tuesday), Trade Balance (Wednesday) and a heavy data day on Friday including Retail Sales, PPI and Michigan Sentiment survey. We will provide our previews and reviews of these data releases in the daily summary.
In the Eurozone GDP Thursday and Industrial Production on Friday. In the
In
In
KEY WEEKLY PIVOTAL LEVELS
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3963 | 1.4033 | 1.4140 | 1.4160 | 1.4200 |
| USD/JPY | 115.29 | 116.37 | 117.00 | 117.28 | 117.88 |
| GBP/USD | 2.0260 | 2.0279 | 2.0415 | 2.0444 | 2.0495 |
| AUD/USD | 0.8795 | 0.8866 | 0.8990 | 0.9005 | 0.9052 |
| XAU/USD | 721.30 | 727.50 | 741.05 | 744.07 | 747.85 |
·Euro 1.4140
Initial support at 1.4033 (Oct 5 low) followed by 1.3963 (Sep 20 low). Initial resistance is now located at 1.4160 (Oct 5 high) followed by 1.4200 (61.8% retracement 1.4282 to 1.4068 & Oct 3 high at 1.4201)
·Yen 117.00
Initial support is located at 116.37 (Oct 5 low) followed by 115.29 (Oct 2 low). Initial resistance is now at 117.28 (Oct 5 high) followed by 117.88 (50% retracement 124.15 to 111.61 decline).
- Pound – 2.0415
Initial support at 2.0279 (Oct 4 low) followed by 2.0260 (38.2% retracement of the 1.9880 to 2.0495 advance). Initial resistance is now at 2.0444 (Oct 3 high) followed by 2.0495 (Oct 1 high)
- Australian Dollar – 0.8990
Initial support a 0.8866 (Oct 5 low) followed by 0.8795 (Oct 4 low). Initial resistance is now at 0.9005 (Oct 5 trend high) followed by 0.9052 (June 1984 high).
- Gold – 741.05
Initial support at 727.50 (Oct 5 low) followed by 721.30 (Oct 4 low). Initial resistance is now at 744.07 (Oct 5 high) followed by 747.85 (Oct 1 trend high)
