23/08/06
last week’s currency trading review
The Dollar fell against most of the major currencies last week following weak PPI, CPI and housing data. The weak data supported the view that the Fed may have reached the end of its rate hiking cycle. The Euro traded steadily, despite data not posting as strong as forecasts. The Euro closed last week at 1.2834 having started the week at 1.2737. US$/JPY closed last week at 115.70 having started the week at 116.26.
The forex trading week preview
The coming week brings a rather light data calendar, following a busy couple of weeks. However, there are still a number of releases of interest, particularly in terms of monitoring the pace of activity in the
In the States housing activity is clearly in the grip of a slowdown, with starts down around 10% yoy and the NAHB survey at its lowest reading since the 1990/91 recession. Analysts expect further evidence of the ongoing moderation in the level of US housing market activity in the form of the upcoming releases for existing home sales (Wednesday) and new home sales (Thursday). Analysts expect US durable goods orders (Thursday) are likely to have declined due to lower aircraft orders. Manufacturing surveys in the
In the Eurozone the key release will be the IFO sentiment indicator for August. The IFO survey is expected to post a modest decline in August as the VAT hike may offer some near term support by bringing forward some production and consumption. Analysts also look for a modest drop in the Belgian leading indicator (Wednesday) in August. German regional CPIs (from Thursday) will provide the first indication of inflation in the Eurozone in August. We will provide our previews and reviews of these data releases in the daily summary.
In
Key Weekly Pivot levels