Euro Finds Intraday Support Head of 20-Day SMA, British Pound Looking For Bottom.Summary: The euro tipped lower for the second day but remained supported by the 20-Day moving average, and the EUR/USD may continue to trend sideways over the following...The euro tipped lower for the second day but remained supported by the 20-Day moving average, and the EUR/USD may continue to trend sideways over the following month as investors weigh the outlook for future policy. Talking Points * Japanese Yen: Democratic Party Wins Election * Pound: Tips Lower For Second Day * Euro: CPI Estimate Falls Less Than Expected in August * US Dollar: NAPM-Milwaukee, Chicago PMI See Private Mortgage Insurance. on Tap Euro Finds Intraday Support Head of 20-Day SMA (1) See SMA connector. (2) (Shared Memory Architecture) See shared video memory. (3) (Software Maintenance Association) A membership organization that began in 1985 and ended in 1996. , British Pound Looking For Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. Bottom The euro tipped lower for the second day but remained supported by the 20-Day moving average, and the EUR/USD may continue to trend sideways over the following month as investors weigh the outlook for future policy. At the same time, the economic docket for the Euro-Zone showed the CPI estimate declined less than expected in August after falling at a record pace during the previous month. The data reinforces a bullish outlook for the single-currency as the European Central Bank European Central Bank (ECB) Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, maintains it's one and only mandate to ensure price stability, and the euro-dollar may continue its advance from the March lows as investors anticipate the central bank to tighten policy over the next 12 months. A report by the European Union statistics Statistics in the European Union are collected by Eurostat. The EU has 27 member states as of 1 January 2007. This number will increase as other states join the Union. See also: Enlargement of the European Union Institutional Statistics Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of 0.2% in August amid expectations for a 0.3% drop, and the data encourages an improved outlook for inflation as the region emerges from its worst recession since the post-war period. As inflation expectations remain well anchored, the European Central Bank is widely expected to hold the benchmark interest rate Benchmark interest rate Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run). at 1.00% later this week and is likely to maintain its EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 60B in covered bond purchases as the economic outlook remains uncertain. A Bloomberg News survey shows all of the 58 economists polled forecast the ECB See electronic code book. to hold borrowing costs at the record-low on September 3rd, and commentary following the rate decision is likely to spark volatility in the foreign exchange market as investors anticipate the central bank to raise the interest rate by more than 50bp over the following year. Traders in the U.K. were offline in observance of the Summer Bank holiday however; the British pound remains under pressure and weakened for the second day to reach a low of 1.6184 during the Asian trade. As market participants scale back their appetite for risk, we may see the GBP/USD continue to retrace the advance from the previous month, and may fall towards last week's low (1.6155) to test for short-term support. However, a break below this level should expose the 100-Day moving average at 1.6000, and the pair may continue to trend lower in September as investors lower their expectations for higher interest rates in the U.K. The U.S. dollar advanced against its currency counterparts during the overnight as investors scaled back demands for high-yielding assets, and the greenback greenback, in U.S. history, legal tender notes unsecured by specie (coin). In 1862, under the exigencies of the Civil War, the U.S. government first issued legal tender notes (popularly called greenbacks) that were placed on a par with notes backed by specie. may continue to strengthen over the next few hours of trading as the equity futures foreshadows a lower open for the U.S. session. At the same time, the economic calendar is anticipated to reinforce an improved outlook for manufacturing as economists forecast the Chicago PMI to rise for the third consecutive month in August, while the Dallas Fed's manufacturing activity index is expected to contract at a slower pace during the same period. Moreover, the NAPM-Milwaukee index is projected to rise to 49.0 from 45.0 in July, and the data is likely to encourage an enhanced outlook for future growth as policy makers anticipate economic activity to improve throughout the second-half of the year. Will The EUR/USD Remain Above 1.4000? Join us in the Forurm Related Articles: Forex Forex See: Foreign exchange Weekly Trading Forecast - 08.31.09 To discuss this report contact David Song, Currency Analyst: dsong@fxcm.com 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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