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10:30 AM EDT, Canada Bank of Canada Summer Review.  The Bank of Canada Review is a quarterly publication featuring articles related to the economy and inflation. 10:30 AM EDT, Weekly Natural Gas Storage.  Last week the release came in at 56 Billion

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The EURUSD is continuing the pattern from yesterday.  The pair is testing the 200 hour MA at the 1.5822 level which is the 200 hour MA.  It also is the Midpoint of the recent move up from the lows on July 7th to the high on July 15th.  A break below would tilt the sentiment to the downside. 

The USDJPY sold off sharply last night moving below the 50% retracement level of the last leg up and ultimately tested the 61.8 retracement level at the 104.93 level (low 104.97) before bouncing.  The pair has now made it back above the 50% level at the 105.63 level and has strung together 4 straight hourly up bars (see chart below).  If the pair can remain above the 105.63 level today, the bottom may be in place.  All bets are off if the pair goes below the 105.37 level.

Today, ECB's Trichet "surprised" the market with his rate hike predicition.  Is it really a surprise?   If you look at the numbers, it really is not. 

Read the special report on the ECB's inflaton dilemma and how they will most likely have little choice but to raise rates ahead.

CLICK ON THE PDF ATTACHMENT BELOW TO READ THE FULL REPORT

Thank you for choosing FXDD.

Greg Michalowski

Chief Foreign Exchange Analyst

Next week the economic data starts to heat up again. 

For a preview of the weeks main events, click on the Atttachment option below. 

Have a great weekend and a profitable day trading

Overnight, the UK CPI came out much higher than expected at +3.0% year on year.  This will keep the UK on hold with regard to rates in June just when the growth side of the economy could use the stimulus – especially in the housing sector.  The Retail Price Index also had strong increases, with the YoY measure rising to 4.2%.  The high inflation coupled with expected weak economy sent GBP pairs lower this morning.   

To view this weeks video of the key economic releases for the week, click on the following link: