Positioning Trades Before Weekend

20-05-2011

The broad markets continued to turn in a rather firm trading session on Thursday. The EUR fought through ranges and finished the day with gains against the USD, and the GBP followed suit. Commodity prices continued to consolidate on Thursday highlighting that even as risk is being sought by investors that there is an underlying tentative sentiment that remains. Wall Street turned in a positive day of trading but its gains were unimpressive. The U.S. released a considerable amount of data on Thursday and at best it could be called lackluster. While weekly Unemployment Claims were slightly better than estimated, the result of 409k will not commence any parades. Additionally the Philly Fed Manufacturing Index went south and turned in a reading of 3.9, which was far short of the anticipated mark of 20.2. Lastly the Existing Home Sales numbers came in below forecasts too. The combination of a weak manufacturing base, a bad housing market, and a soft employment picture will not bring any smiles to investors.

Data will be hard to find this last trading day of the week, Europe was quiet with releases yesterday, but the U.K. did present Retail Sales figures and they produced a gain of 1.1%. The EUR and GBP both gained on Thursday. The Single Currency finds itself within an opportunistic range for traders with strong opinions. The EUR has begun to touch higher values particularly in contrast to the opening trading session of this week. The question for the EUR is essentially about the direction investor s will take taking into consideration the difficulties that the Sovereign Debt crisis poses. Without any major data on the table today, traders should be aware that the past two weekends have produced newsworthy events that have affected the EUR as trading has opened on Mondays. Thus traders looking to participate today should take into account any positions that will have to be held without knowledge of the path officials from European nations will align themselves with Saturday and Sunday. Also another factor to consider is that the IMF is still debating who will be its Managing Director. The EUR has certainly shown an ability to turn in a rather strong performance the past few days and going into today is likely to see its range tested.

The Sterling kept pace on Thursday. The U.K. did turn in better Retail Sales data, but like the weekly Unemployment Claims from the States yesterday, its result was not parade worthy. The U.K. continues to face tough hurdles and the GBP while being able to maintain a range still has questions ahead because of growth prospects and austerity issues. In the short term it appears that the Sterling will continue to trade in a rather EUR centric mode. Friday’s trading session may present some opportunities for participants who can act quickly.

The JPY and AUD both turned in consolidated ranges on Thursday. With commodity prices basically standing in place the AUD performed likewise. The JPY has lost some ground to the USD the past few sessions and the question is if it can break free of the extremely tight range of which it has been under a spell. The JPY remains within the stronger realms of its value even with a few recent negative sessions. Traders should continue to monitor the JPY. Gold as of this writing is around 1498.00. Physical resources have been consolidated the past few sessions which may indicate a break out could occur and traders should pay attention to both Gold and Crude Oil today.

Trends Reverse…Slightly 17-05-2012

The Euro is up slightly against the greenback during early European trading on Thursday, but remains far below levels from two weeks ago. The EUR/USD is up 0.18% and trading at 1.2739 this morning, rebounding from a 0.10% decline during yesterday’s trading in the United States that saw the pair close the session at 1.2717. The Dollar is [...]

The Collapse of Oil Prices Continues 16-05-2012

Early trading on Wednesday saw a continuing trend of investor concern towards the Greek political crisis and a rush to the greenback. With the chance of Greece leaving the Eurozone more likely with each passing day, the Euro continues to struggle against the Dollar. The EUR/USD is down 0.11% in early European trading this morning, at [...]

European Uncertainty 15-05-2012

The U.S. Dollar was up against most major currencies on Monday, as investor uncertainty regarding the Greek political crisis continued to push investors towards the safe haven of the greenback. The Euro is up slightly at the beginning of the European trading session on Tuesday by 0.05%, sitting at 1.2828. The Euro has declines sharply [...]

Euro Falls Once Again 14-05-2012

Political uncertainty in Greece and mass protests in Spain has pushed the EUR/USD down 0.15% to 1.2897 during late Asian trading on Monday. In fact, the greenback was either steady or up against most major currencies as traders searched for a temporary safe haven in order to dodge uncertainty in the markets. The increased value of the [...]

Time Is Ticking For Greece 11-05-2012

The Euro is back on the decline during Asian trading on Friday, with the EUR/USD down 0.14% and trading at 1.2920. The pair continues to hover at around 1.3000 after the single currency took a major hit due to fears surrounding political instability in Greece and future fiscal policy in France. The pound is also down against the greenback [...]

Euro Declines Stop 10-05-2012

The Euro has rebounded slightly against the USD during Asian trading on Thursday after posting huge losses over the last several days. The EUR/USD is up 0.15% and trading at 1.2946. The majority of major currencies are also up against the greenback this morning, including the Pound, Swiss Franc and Australian Dollar. The Aussie posted [...]

Euro Decline Continues 09-05-2012

The beginning of trading on Wednesday continued the negative trend of the Euro and oil. The Euro continues to decline sharply, down 0.24% and trading at 1.2975. The EUR/USD broke through the 1.3000 barrier earlier this week after European elections in France and Greece cast a shadow over the future of the single currency. The Euro is also [...]

Declines Continue for Oil and Euro 08-05-2012

The Euro is down once again during late Asian trading on Monday, after suffering huge losses yesterday. The EUR/USD is down 0.15% and trading at 1.3032. The single currency did manage to recover somewhat during late trading yesterday, rebounding from a decline of 0.81% at the end of the Asian trading session. Investors continue to show [...]

Future of the Euro in Doubt? 07-05-2012

Two key election results in the European Union are threatening to undo the single currency. Francois Hollande is the new president of France, after defeating Nicolas Sarkozy by a small margin in the second round of elections. Hollande is the first socialist president in France in the last seventeen years. Many voters in France expressed [...]

Oil Prices Plummet 04-05-2012

Oil prices plummeted during the U.S. trading session on Thursday after European Central Bank President Mario Draghi expressed concern over future growth of the EU economy. The price of crude was down 2.48% and trading at 102.61 USD per barrel. Oil was also hit hard because Draghi claimed that ECB was not planning to increase liquidity in [...]

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