Forex News Preview: Japan Unemployment to be released at 7:30 PM

Later on Tuesday at 7:30 PM, the Japanese will release their Unemployment statistics for the month of March.  Last month the Jobless rate inched up to 3.9% from a nine year low in February.   

Meanwhile, the Job-to-Applicant Ratio, a measure of employer demand for workers, fell to the lowest level since September of 2005.  Slowing profit margins due to higher energy and food costs have prompted companies to reduce hiring. This month the expectation is for the Jobless Rate to remain at 3.9% and the Jobs-to-Applicant ratio to remain at 0.97.    Traders and analysts will want to see if there are any additional signs of weakness showing up in these key employment statistics.   

On Sunday evening, retail sales in Japan came in stronger than expected.  However, the increase was due to higher spending on gas and food, leaving little left for clothing and furniture.

Forex News Preview: NZ Building Permits

Later in the evening in NY, the New Zealand the Building Permits will be released for the month of March. The statistic will be released at 6:45 PM EDT.   In February home building approvals fell for the fourth time in six months as consumers and investors got squeezed by record high interest rates.  The total approvals on new houses and apartments declined by 6.5%.   Traders will be watching this number closely to see if the trend gets worse or rebounds.  The expectation would be for further declines as inflation, high interest rates, and a high New Zealand dollar continues to squeeze the consumer.

Forex Trading – GBPUSD – Comments and Breakout Looming

BLANCHFLOWER SAYS WEAKER POUND MAY HELP STIMULATE ECONOMY
BLANCHFLOWER SAYS POUND MAY FALL FURTHER
BLANCHFLOWER SAYS U.K. ECONOMY IS `AT A TIPPING POINT’

Forex News BOE Blanchflower on the wires

Below are his comments from the wire reports: 

•  CREDIT CRUNCH IS STARTING TO HIT U.K.
•  U.S. NOW SEEMS CLEARLY TO BE IN RECESSION\
•  HE’S GENERALLY INCLINED TO LOOSEN POLICY
•  REAL RISK U.K. CPI MAY FALL BELOW 1%
•  AGGRESSIVE ACTION NEEDED TO AVERT RECESSION
•  REAL RISK OF U.K. FALLING INTO A RECESSION
• U.K. RATE CUT NOW MAY LIMIT HOUSE PRICE DROP
•  CONSUMER SPENDING GROWTH MAY DROP SHARPLY
•  U.S. CONTAGION IS IN THE AIR’ FOR U.K.
•  WAGES ARE WELL CONTROLLED IN U.K. 
• U.K. HOUSE PRICES MAY FALL BY A THIRD
•  U.K. MONETARY POLICY IS STILL RESTRICTIVE
•  BOE SHOULD LOOSEN POLICY SOONER, NOT LATER
•  U.K. LABOR MARKET SEEMS TO BE TURNING

ANALYSIS: This should be bearish for the GBPUSD and bullish for EURGBP. 

Forex Trading USDJPY testing the 200 hour moving average at 103.61

The USDJPY is testing the 103.61 after selling off sharply on the break earlier today. 

Forex Trading USD/JPY

Forex Trading USDJPY breaks below Moving Average support.

Expect resistance at 103.60 now.

Forex Trading USDJPY testing support at 103.60 (200 Hour Moving average)