CompassFX Webinar with Greg Michalowski Thursday 4:00PM
CompassFX is having a special webinar with Greg Michalowski this Thursday 4:00PM
Aussie Home Loans
The April reading for Australian Home Loans came in above the 2.8% increase expected with a reading of 4.8%. Investment Lending fell by -1.6% after a positive reading the prior month of 2.1%. The Aussie has had a muted reaction after we have seen risk weaken for the most of the first half of the Asian session following Bernanke’s dovish Q&A.
Japans Trade Balance
Japan’s Trade Balance in April again came in at a deficit of -417.5B, worse than the expectation of -379B. The Current Account Total however was released firmer at +405.6B vs. the estimate of 200B. The market has had no reaction to this release as it has been in a tight range since Fed Chairman Bernanke’s Q&A session.
The Trader Course Lesson 9. Using Moving Averages Rebroadcast June 7th 2011
Join us for a great class today with Greg Michalowski and Shawn Powell at 4pm est/1pm pst - Rebroadcast now available.
Bernanke. Accomodative Monetary Policies are still needed
- Households facing headwinds
- US growing well below maximum potential
- Recovery not firm without sustained job creation
- Health of economy hinges on limted inflation
- Recent loss of momentum in the labor markets
- Growth likely to pick up in the 2nd half of this year
- Reason to believe commodity price rise is transitory
The Chairmans comments are dollar bearish. Is it anything new, however? Probably not. Bernanke will not be satisfied until the unemployment rate goes to the 6% range.
CompassFX Webinar with Greg Michalowski Thursday 4:00PM
CompassFX is having a special webinar with Greg Michalowski this Thursday 4:00PM
USDCHF wanders down to intraday MA support as market prepares for Bernanke
Bernanke is expected to speak at 3:45 PM ET and if he is true to form he will lament employment and housing, downplay inflation to an extent. He is likely to comment that QE2 will be ending. The reaction is typically bearish for the dollar. The USDCHF stopped its rally today and has rotated back down to the 100 bar MA as the comments are awaited.
Consumer Credit in the US comes in higher at 6.24 billion
Revolving Credit declines by -$0.9 billion (credit card debt)
Non-revolving Credit (educational loans, car and motor home loans) increase by $7.2 billion
German Finance Minister says Eurozone facing first state insolvency
Finance Minister Schaeuble says we are facing the first uncoordinated state insolvency within the Eurozone. This is reportedly from a news article in a German paper.
He adds that it is unlikely that Greece will return to the capital markets in 2012 and that private creditors should be involved in Greek debt restructuring. He does think, however, that there will be a substantial expansion of European aid to Greeece.
FOMC Bernanke to speak at 3:45 PM ET
His comments will be the first from the Chairman since the weak employment report. It is likely he will reiterate the idea that one number does not make a trend but express concern about some sectors of the economy (i.e housing) and that employment will continue to take a long while to get back to desired levels. The “desired level” for the Fed is likely around the 6%-6.5% range. This is the average rate for the Unemployment going back to 1970.
Feds Lockhart. Frustrated with the economy. Urges inflation target
He is wary of tightening policy in the face of ambiguous economic circumstances unless inflationary pressures threaten price stability. He does say it would be a mistake to overreact to the jobs report. He feels that setting an explicit numerical objective for inflation. He notes that the job creaton will be hindered without confidence that the Fed can provide price stability.
He adds the housing sector in a bad state.
Moody’s says a Greek debt rollover would be a default
NY Midday Forex Commentary for May 7th is available for viewing
USDCHF tests key resistance target at the 100 hour MA/old low and high
The USDCHF is testing key resistance target at the 100 hour MA at 0.8788 and the highs/lows from the last 5 days of trading (see chart above). This is a key level for the pair.
The low to high range for the day is from 0.8325 to 0.8389. The 64 pips range is lower than the 20 day average true range of 97 pips for the pair. As a result, there is additional room if there is a break above the key resistance level.
Look for support at the 0.8376 area now. If a correction off the 100 hour MA comes down and holds this level, look for additional buying interest with a break of the key resistance the key clue for the intraday bulls.
- kenny on EURUSD tests 200 hour MA. Look for support against level
- Greg Michalowski on EURUSD tests 200 hour MA. Look for support against level
- kenny on EURUSD tests 200 hour MA. Look for support against level
- Greg Michalowski on EURUSD tests 200 hour MA. Look for support against level
- kenny on EURUSD tests 200 hour MA. Look for support against level
- Jan SFO
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- Reuters 1-24-12
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