Forex Information and Trading News

USD Strength Across the Board

Almost all major resistance levels taken out in the USD-crosses. But negative Citigroup and Merrill Lynch news might weigh heavily on stocks.

• Euro has sank to a 5-month low against the dollar as Trichet’s comments regarding weak growth estimates have caused the markets to reduce bets on future rate increases by the European Central Bank.
• AIG’s largest reported loss since 1969 and Wal-Mart forecast of slower sales have taken the steam out of this week’s advance in US equities, with S&P registering near 2% decline on Thursday’s trading.
• Q2 earnings by the S&P500 companies show about 21% decline in earnings compared to a year earlier, with large automobile and consumer finance companies taking a disproportionately large hit.

• FX: Dollar stronger across he board with EURUSD and GBPUSD taking out key support. But EURUSD remains capped by 200 day MA.
• Fixed Income: Bunds had a strong close yesterday after Trichet’s comments. US 10-year close to testing key resistance.
• Stocks: Stocks lower in US with financials and insurance leading the pack. Asian session showed little change.
• Commodities: Gold and silver following the stronger dollar. Crude oil sell-off capped by 117.02 61% (from 97.92-147.91).

Overnight

• SW Budget Balance (Jul) out at 51.5B vs. 13.8B prior.
• SW CPI Headline Rate MoM/YoY (Jul) out at -0.1%/4.4% as expected.
• SW CPI Underlying MoM/YoY (Jul) out at -0.3%/3.2% vs. -0.3%/3.2% expected.
• NO Industrial Production MoM/YoY (Jun) out at -0.7%/5.9% vs. 1.6%/2.8% prior.
• NO Ind. Prod. Manufacturing MoM/YoY (Jun) out at -1.2%/4.7% vs. -1.3%/5.3% expected.
• UK HBOS House Prices MoM/YoY (Jul) out at -1.7%/-8.8% vs. -1.5%/-8.6% expected.
• GE Industrial Production MoM/YoY (Jun) out at 0.2%/1.7% vs. 0.8%/1.5% expected.
• UK BoE Rate Announcement out at 5.00% (unchanged) as expected.
• E-Z ECB Rate Announcement out at 4.25% (unchanged) as expected.
• CA Building Permits MoM (Jun) out at -5.3% vs. -1.0% expected.
• US Initial/Continuing Claims out at 455K/3311K vs. 425K/3255K expected.
• US Pending Home Sales MoM (Jun) out at 5.3% vs. -1.0% expected.
• US EIA Natural Gas Storage Change out at 56 vs. 62 expected.
• US ICSC Chain Store Sales YoY (Jun) out at 2.6% vs. 3.4% expected.
• US Consumer Credit (Jun) out at $14.3B vs. $6.3B expected.
• JN Bank Lending incl. Trusts YoY (Jul) out at 1.8% vs. 2.0% expected.
• JN Eco Watchers Survey Current/Outlook (Jul) out at 29.3/30.8 vs. 28.9/32.1 expected.
• SZ Unemployment Rate (Jul) out at 2.3%/2.5% as expected.