YTFX Siganls

WTI
WTI (Daily Chart):
WTI is moving sideway and lower formation. Watch the market to break the downtrend line to get long
Long @ 103.100
T.P @ 105.100
S.L @ 102.00
  欧元兑美元
AUD/CAD
  AUD/CAD (1H Chart)
  Building momentum to continue higher. Use any pullback to get long
  Long @ 0.98600
  T.P @ 0.98947
  S.L @ 0.98500
  欧元兑美元
  NZD/USD
  NZD/USD (4H Chart)
  Similar to the AUD set up. Momentum is up. Use any pull back to positioned Long
  Long @ 0.83639
  T.P. @ 0.84117
  S.L @ 0.83461
  欧元兑美元

FindYourFX.com is one of the best Forex broker website and also provides the highest Forex cashback to our clients. We have already collected more than 30 the most famous and trustable Forex brokers. We are providing the detailed broker detailed information from 6 different view angles, such as deposit and withdraw fund, trading platform and product spread. We also provide a multiple dimension Forex broker comparison function to allow our visitors to find the most suitable Forex broker.

Posted in Report | Leave a comment

FXEmpire Industrial Metals Climb As Precious Metals Tumble

With little data and news flow focus on the US political debates there was little activity in the commodities market. Volume was light and there was little volatility as Gold climbed yesterday only to give back some of those gains this morning. Gold is currently trading at 1272.900 down close to $4 as political leaders indicated that a final agreement was close and a vote could be expected later today. Gold prices rose on Monday as US lawmakers failed to reach a deal over the weekend, supporting gold’s safe haven appeal but volumes were low due to a holiday in US. The congress reached closer to a deal late yesterday which would end the 14 day long government shutdown and raise the debt ceiling to cover government funding till Feb 2014. Continuous outflows from SPDR, the world’s largest gold-backed exchange-traded fund weighed heavily on the commodity. Data showed that SPDR gold holdings declined by 0.2 percent to 889.13 tons. Other than the fiscal situation in US signal weak investment demand for gold and are likely to weigh on prices. Gold prices are expected to trade in the red today as a possible deal on debt ceiling and fading investment demand can hurt prices.

Silver prices declined by 179 points to trade at 21.175 as silver was hit by a double whammy yesterday with a drop in demand for precious metals and lower demand for industrial metals as Chinese trade data weighed heavily on metals. A slight uptick in industrial production in the eurozone is helping to support metals and is giving metal traders a glimmer of hope that things might be mending in the eurozone. Copper is trading at 3.295 well off the lows seen last week when Copper touched below 3.25. Rising demand for metals comes as surveys have recorded a steady improvement in consumer confidence in Europe in recent months as reported by Bloomberg. Rising demand comes as surveys have recorded a steady improvement in consumer confidence in Europe in recent months. Data provider Markit said its composite purchasing managers’ index for the euro zone rose to 52.2 in September from 51.5 in August, signaling the fastest growth rate in 27 months. A reading above 50 means month-to-month expansion in the manufacturing and services industries. Combined with PMI figures from July and August, the result suggests the third quarter was the strongest for business activity in more than two years. Conditions also appear to be improving in the copper market. European demand has plummeted in recent years as the financial crisis suppressed economic activity in the region, the world’s second largest consumer of base metals after China, but there have been signs of recovery in recent months. For copper, demand rose 1% in the third quarter to 922,000 tons; CRU forecasts it will rise nearly 2% in the fourth quarter to 935,000 tons.

Base metals are expected to trade in a fairly tight range today as investors would await the decision on US debt ceiling as well as economic sentiment from Euro zone and Germany with the ZEW releases later this morning.

FindYourFX.com has already collected more than 30 the most famous and trustable Forex rebate brokers. If you opened an account with these brokers through us, your fund will be secured and we will provide you the highest Forex cashback in the market. At the end of each month, you will receive the rebate in cash from us as well as find your commission has been sharply reduced. It means you will have further more profitable opportunities. We will guarantee you will get the cash on time.

Posted in Market Updates | Leave a comment

FXEmpire A Void In Economic Data Upsets Forex Traders

With the beginning of the month data behind traders and the end of the month data weeks away there is a vast void with US government data unavailable. What little data is expected in the middle of the month, US data is usually the focal points, with US unemployment data due each Thursday. Starting this month without the release of the nonfarm payroll report traders have become more and more stressed trying to make sense of what little data they have.
The US National Association for Home Builders will release its survey of building conditions in October. The housing market index is projected to slip to 57 from 58 in September. Higher mortgage rates are probably slowing new home sales. The Fed will release its beige book on Wednesday. With little economic data being released during the shutdown, policymakers will have to assess the economy by relying on the anecdotes contained in the book. The book is being prepared in advance of the Fed’s October 29-30 policy meeting.

New flow has been centralized on the US debt ceiling and budget negotiations, while European and Asian leaders have been rather quiet and what comments they have made individually or through the G20 summit have been mostly covering the US situation and the FOMC tapering programs, which has most likely now been pushed back until 2014. The US dollar continues to trade in the red, this morning the DX is 80.37 but touched below 80.20 on Monday. Each news release or press conference regarding US lawmakers sends the dollar on a roller-coaster. The US Dollar Index decreased by 0.09 percent in yesterday’s trading session on the back of US government Shutdown. However, expectations that the US lawmakers will find a way to raise debt ceiling, cushioned sharp fall in the dollar. The dollar eased against the yen in Asia this morning as traders focus on Washington, where lawmakers say they are close to a deal to reopen the government and avert a debt default. The greenback bought ¥98.49 in Tokyo trade against ¥98.67 in New York on Monday afternoon.

The euro bought $1.3554 and ¥133.51 compared with $1.3559 and ¥133.79. Japan’s Finance Minister Taro Aso on Tuesday voiced growing frustration with the protracted US debt-ceiling standoff, calling on politicians to get to grips with the situation. The euro benefitted from a positive print of industrial production yesterday while traders will watch Germany’s ZEW release later today. A possible US debt default would have “dramatic consequences” for the global economy, EU Economic Affairs Commissioner Olli Rehn says. “It is very important that the US overcomes its fiscal gridlock,” Mr Rehn said on Monday as he arrived for a meeting of eurozone finance ministers. His warning follows remarks in a similar vein by the governor of the French central bank, Christian Noyer, in the French newspaper Le Figaro. Noyer, a former vice president of the European Central Bank who sits on the ECB’s policy-making body, said: “If we were to have … an accident over the American debt it would be, as the IMF has said, a thunderbolt for the financial markets.” Noyer said such an event would generate “extremely violent and profound” turbulence around the world. An EU official speaking last week warned too about the possible huge impact of a US debt default, saying there was very little that could be done to prepare for such an eventuality. The UK pound gained 11 points this morning following its cousins as the US dollar declined. The pound is trading at 1.5994.

FindYourFX.com is currently providing free Forex signals to allow our visitors to monitor our real account trading activities, and also provide free signal following software (MT4 EA) to our VIP clients. All our signals will be provided to these clients in real time, all our clients account will have the same profits as ours. If you become our clients, we will provide you Forex rebates in cash regardless your trading win or loss.

Posted in Market Updates | Leave a comment

FXEmpire Global Equity Markets Poised To Climb As US To Announce Agreement Today

Traders have shown little action to news releases that negotiations between US lawmakers are close to an agreement. On Monday, news hit the wires that a solution had been reached as President Obama delayed a meeting with lawmakers to allow them to finish their negotiations. Rumors hit the markets say that a possible vote could take place as soon as Monday night. Late on Monday evening a bi-partisan press conference indicated that lawmakers were putting final touches on a proposal to open the government and raise the debt ceiling. A vote is now expected early in the US session. Markets are reacting in a positive manner in Asia but traders remain cautious. The Dow climbed yesterday after the news release to add 64 points reversing a loss of much as 101 points in morning trading. The Dow had climbed 461 points over the previous three sessions amid signs that a deal to raise the nation’s borrowing limit and end the government shutdown was in sight. The S&P 500 rose 7 points, or 0.4%, to 1710, while the Nasdaq was up 23 points, or 0.6%, to 3814. European share markets were uncertain as lawmakers in the US did not make any decisions and there was little updated news as the closed for the day. European leading indices ended mixed with the U.K.’s FTSE-100 putting on 0.3% to 6507.65. France’s CAC 40 climbed 0.1% to 4222.96, while Germany’s DAX 30 ended in the red at 8723.81.

On Tuesday morning Asian shares rose to their highest in nearly five months on expectations of an imminent deal to reopen the US government and avert a possible debt default, though the squabbling in Washington kept markets on edge ahead of Thursday’s deadline, reported Reuters. Hong Kong’s Hang Seng rose 0.70 percent or 161.41 points at 23,379.73 and the Nikkei gained 0.37 percent or 53.60 points at 14,458.34. South Korea’s Seoul Composite added 0.90 percent or 18.14 points at 2,038.41 and Taiwan’s Taiwan Weighted was up 0.80 percent or 66.46 points at 8,340.42. China’s Shanghai Composite was flat at 2,237.26. Singapore’s Straits Times shut today. Global markets are poised to soar the minute a deal is approved in the US. Traders will breathe a sigh of relief, just knowing that a default will not happen but more that the government will begin to release data. The data void has weighed heavily on traders over the past two week.

There has been little market wide data to help traders with US data still unavailable. Earlier traders reviewed Chinese data and Eurozone production numbers. Chinese data over the weekend showed a surprise decline in exports in September, signaling the global economy is still struggling to recover. Additionally, Chinese consumer prices rose faster than expected in September, although remaining within the government’s target range. In Europe, data showed industrial production rebounded in August in the euro zone, rising 1% month-on-month. The Wall Street Journal reported that The annual rate of inflation across the world’s largest economies fell in August, a development that if sustained would make many central banks more comfortable with keeping their monetary policies simulative for an extended period. For the first time, a group of international institutions Monday published a measure of inflation for the members of the Group of 20, which comprise the 19 largest national economies, plus the European Union. According to that measure, the annual rate of inflation across the G-20 stood at 3.0% in August, down from 3.2% in July.

FindYourFX.com is one of the best Forex broker website and also provides the highest Forex cashback to our clients. We have already collected more than 30 the most famous and trustable Forex brokers. We are providing the detailed broker detailed information from 6 different view angles, such as deposit and withdraw fund, trading platform and product spread. We also provide a multiple dimension Forex broker comparison function to allow our visitors to find the most suitable Forex broker.

Posted in Market Updates | Leave a comment

FXTG Daily Technical Levels – FindYourFX.com

Dow Jones (Dec 13) intraday: the upside prevails.
Pivot: 15025
Our preference: LONG positions above 15025 with 15275 & 15315 as next targets.
Alternative scenario: The downside penetration of 15025 will call for a slide towards 14945 & 14875.
Comment: the RSI broke above a declining trend line.
  
NZD/USD intraday: further advance.
  Pivot: 0.8305
  Our preference: Long positions above 0.8305 with targets @ 0.8385 & 0.842 in extension.
  Alternative scenario: Below 0.8305 look for further downside with 0.8265 & 0.823 as targets.
  Comment: technically, the RSI is above its neutrality area at 50.
  
  GOLD (Spot) intraday: key ST resistance at 1287
  Pivot: 1287.00
  Our preference: SHORT positions below 1287 with targets @ 1262 & 1254.
  Alternative scenario: The upside penetration of 1287 will call for 1295 & 1309.
  Comment: as long as 1287 is resistance, look for choppy price action with a bearish bias.
  
  EUR/USD intraday: further advance.
  Pivot: 1.3545
  Our preference: Long positions above 1.3545 with targets @ 1.3605 & 1.363 in extension.
  Alternative scenario: Below 1.3545 look for further downside with 1.3515 & 1.3485 as targets.
  Comment: the RSI is supported by a bullish trend line.
  
  AUD/USD intraday: bullish bias above 0.945.
  Pivot: 0.945
  Our preference: Long positions above 0.945 with targets @ 0.952 & 0.955 in extension.
  Alternative scenario: Below 0.945 look for further downside with 0.9415 & 0.9385 as targets.
  Comment: the RSI calls for a new upleg.
  
  GBP/USD intraday: further advance.
  Pivot: 1.595
  Our preference: Long positions above 1.595 with targets @ 1.6045 & 1.609 in extension.
  Alternative scenario: Below 1.595 look for further downside with 1.591 & 1.588 as targets.
  Comment: the RSI lacks downward momentum.
  
  ASX 200 (Dec 13) intraday: under pressure.
  Pivot: 5235
  Our preference: Short positions below 5235 with targets @ 5159 & 5140 in extension.
  Alternative scenario: Above 5235 look for further upside with 5262 & 5295 as targets.
  Comment: as long as 5235 is resistance, expect a return to 5159.
  
  Risk Warning
  Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.
  There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
  Moreover, the leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. Investors may lower their exposure to risk by employing risk-reducing strategies such as ‘stop-loss’ or ‘limit’ orders.
  Since the possibility of losing your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose which will not dramatically impact your lifestyle. Forex Systems is compensated through a portion of the bid/ask spread.

FindYourFX.com is the best Forex broker comparison website; we have already collected more than 30 world top Forex brokers on our website. We do not just provide the detailed information for each Forex broker, but we also provide the highest Forex rebate to our clients. Our mission is that let all our clients and visitors to deeply understand each Forex brokers and sharply reduced our clients trading commissions.

Posted in Report | Leave a comment

YTFX Siganls

  EUR/CAD
  EUR/CAD (4H Chart):
  Daily chart is ready to breakout. 4 hours chart gives a buying opportunity
  Long @ 1.40346
  T.P @ 1.40922
  S.L @ 1.40173
  欧元兑美元
  WTI
  WTI (1H Chart)
  The commodity is drifting sideways and down. Short time frame for another opportunity to sell the WTI.
  Short @ 102.082
  T.P @ 101.228
  S.L @ 102.379
  欧元兑美元
  DAX
  DAX (1H Chart)
  Aggressive trade. the index is gapping down. Wait for a push back up to short the German Index.
  Short @ 8712.53
  T.P @ 8661.49
  S.L @ 8732.16
  欧元兑美元

FindYourFX.com is one of the best Forex broker website and also provides the highest Forex cashback to our clients. We have already collected more than 30 the most famous and trustable Forex brokers. We are providing the detailed broker detailed information from 6 different view angles, such as deposit and withdraw fund, trading platform and product spread. We also provide a multiple dimension Forex broker comparison function to allow our visitors to find the most suitable Forex broker.

Posted in Report | Leave a comment

IronFX Today Markets Big Picture 2013-10-14 FindYourFx.com

THE BIG PICTURE
Markets sanguine in the face of debt impasse: Stocks higher, VIX index lower, dollar lower and gold sharply lower it’s a familiar pattern recently. Stocks continued higher in Asia this morning too although S&P 500 futures were down 0.7% in early European trading. Apparently the markets don’t really believe that the US budget/debt ceiling talks are at an impasse. In the only market that’s taking this threat seriously, the T-bill market, yields in November and December have risen as well as yields in October, but yields for January and beyond are up only a few basis points, indicating that people may be thinking just that the problems will be pushed out further into the future as the two sides negotiate some agreement that will buy some time for more talks.
I see no indication that the two sides are any closer to an agreement. On the contrary, the Republicans seem shocked that the Democrats are not going to “compromise” with them and give them something face-saving to allow them to declare a “victory” in this fight that they started. Nowadays it’s hard to sort out satire from fact – the satirical headline that ran in one magazine, “Boehner: Obama stubbornly refusing to end the crisis that I created,” seems like a fairly accurate portrayal of the Republican position. Senator John McCain said of the Democrats, “if they try to humiliate Republicans, things change in American politics..” This has become a matter of pride, not politics. I expect the situation to get noticeably worse over the next few days and for the risk-on trades to reverse as a result. Indeed AUD was weaker this morning, the only currency to fall vs USD, but that was because home loan approvals in Australia fell 3.9% mom in August, the first decline this year. JPY and CHF were also a touch stronger this morning, but not significantly.
The US, Japan and Canada are on holiday, there are no indicators out of UK, so that leaves Eurozone industrial production for August as the only important indicator coming out today. It’s expected to rise by 0.8% mom, a turnaround from -1.5% mom the previous month. For the week as a whole, the focus will be on the monthly data dump from China. We had CPI and PPI for September out this morning (3.1% yoy and -1.3% yoy, respectively, both showing some acceleration from the previous month). On Friday we get 3Q GDP figures, industrial production, fixed assets investment and retail sales data, all for September. The other highlight will be the ZEW survey on Tuesday. In the US, we have two Fed surveys – Empire State and Phili Fed – along with housing starts and the leading indicator. In the UK, investors will be waiting for the all-important UK employment data Wednesday and retail sales on Thursday.

THE MARKET
EUR/USD

EUR/USD moved higher after Democratic and Republican leaders failed to resolve the budget and debt standoff. The rate found resistance at the upper boundary of the purple downward sloping channel and during the early European session it is testing the resistance barrier of 1.3564 (R1). A clear violation of that hurdle would signal the exit of the short-term channel and should target the short-term highs at 1.3644 (R2). However, the rate remains in its downward path, while both the RSI and the MACD oscillators still lie below their blue resistance lines. As a result, I consider the correcting phase mentioned in previous comments to be still in effect.
Support: 1.3461 (S1), 1.3400 (S2), 1.3324(S3)
Resistance: 1.3564 (R1), 1.3644 (R2), 1.3706 (R3).

Posted in Report | Leave a comment

FXEmpire Crude OIl – Brent Oil Correlation Continues To Widen

Crude oil eased to 101.88 down by 14 cents along with Brent oil which gave up 5 points to trade at 110.37. The overall controlling factor this morning has been a tightening of the trade balance numbers from China and ongoing political theatrics in the US. The drop in US consumer confidence released late on Friday is also weighing on prices. Crude oil prices moved down on Friday as weak consumer sentiment and continued uncertainty over US put pressure on oil prices. Chinese average oil imports in September reached record high at 6.25 million bpd, up 28% on the year. China’s net imports overtook the US as the world’s biggest net oil importer and the trend is expected to continue in future as well. Non-OPEC crude supply is expected to rise by an average of 1.7 million bpd in 2014, according to IEA. OPEC is expected to maintain its output target of 30 million bpd at its December meeting, easing supply concerns. The OPEC report came out last week and showed a drop in OPEC’s oil production in the past month: OPEC’s production during September reached 30.047 million barrels per day, a 389 thousand drop. This decline in production is mostly due to Iraq and Saudi Arabia. Libya’s oil production remains low at 501 thousand barrels per day nearly a third of its normal capacity. If OPEC’s oil production further falls, this could continue to pressure up oil prices mainly Brent oil. The EIA has ceased all operations due to government shutdown and has stopped all publications including the weekly inventory report. Traders are beginning to worry about the lack of data, as the API reports which are considered a leading indicator ahead of the weekly EIA official report have been considerable off the mark in recent month.
The price of WTI crude oil changed direction and declined during last week. WTI fell by 1.75%; Brent oil, however, rose again by 1.66%. As a result, the gap of Brent oil over WTI expanded: The premium ranged between 6.65 and 9.26. Based on the latest EIA weekly report, oil stockpiles rose again by 1.7Mb. The oil stockpiles slightly increased again by 1.7 MB and reached 1,823.4 million barrels. The linear correlation between the shifts in stockpiles has remained stable at -0.202: this correlation suggests that oil price, assuming all things equal, may decline again next week. But in order to better understand the changes in fundamentals let’s also look at the changes in supply and demand: In the U.S, imports and production increased again last week. Refinery inputs sharply fell.

Natural gas is trading at 3.830 gaining 42 points this morning for no precise explanation except a trade in sentiment. The weak US dollar helps make dollar denominated commodities more attractive. U.S. natural gas futures ended higher on Friday with 8% weekly gains on expectations of cooler weather in the coming weeks. Prices are expected to move up further today. Front-month gas rose 5.3 cents, or 1.42 percent, to settle at 3.776 at the end of the week.

FindYourFX.com is currently providing free Forex signals to allow our visitors to monitor our real account trading activities, and also provide free signal following software (MT4 EA) to our VIP clients. All our signals will be provided to these clients in real time, all our clients account will have the same profits as ours. If you become our clients, we will provide you Forex rebates in cash regardless your trading win or loss.

Posted in Market Updates | Leave a comment

FXEmpire US Politics & Chinese Data Shake Up Metals

Gold gained in the Asian session by under $2.00 but remains directionless at 1270.10. Traders are taking advantage of the weak US dollar to buy up the cheap commodity, while others are selling as gold continues to plummet and there is no support as funds continue to dump the asset. On the other hand, copper and silver are trading in the red, with silver down 124 points at 21.135 and is expected to break below the 21 support level as both precious metal and industrial metals are trading in the negative. Copper is down 6 points at 3.265 after Chinese trade balance numbers released over the weekend indicated a drop in demand for metals and ore.
The prices of gold and silver resume their downward trend as both precious metals’ prices tumbled down last week. The political developments in the U.S that resulted in the government shutdown and possibility of a default are likely to be the main news items that will unfold during the upcoming week. On Thursday and Friday, some analysts speculated some progress in the negotiations between the GOP and President Obama, which has led to a rally of the U.S stocks and tumble of precious metals.

The price of gold tumbled down by 3.18% last week; further, the average price reached $1,304.2 which was 0.60% below last week’s average. Gold ended the week at $1,268.06. The price of silver also declined by 2.28%; on the other hand, the average weekly rate was $21.95, which was 1.45% above last week’s. Gold prices fell on Friday ending the week 3.4% down as sell off by hedge funds and institutional investors weighed on prices which halted trading at Comex under the stop logic mechanism. Optimism that the Congress would reach a deal to avert US debt default hurt gold’s safe haven appeal. Though negotiations have progressed over the weekend, no deal has been finalized yet. IMF Christine Lagarde warned of massive disruption to global economy if US fails to lift the debt ceiling. The biggest bullion-importing bank in India, Nova Scotia plans to team up with jewelers to offer gold deposit schemes to ease tight supplies.

This weekend was also the G20 meeting where world finance leaders decided to issue a communique in regards to the US situation. Numerous countries at the annual meeting of the International Monetary Fund and the World Bank said over the weekend the US central bank’s expected tightening had already added challenges to their struggling economies, stirring capital outflows and pressing their currencies lower. The IMF’s steering committee, the International Monetary and Financial Committee, itself cautioned the Fed and other central banks in advanced economies when they begin “normalizing” their ultra-low interest rates and easy-money policies.

Industrial metals are responding to a weak trade balance report from China over the weekend. Copper prices gained on Friday on hopes a deal would be reached in US, which supported riskier assets. Chinese copper imports rose 18.1 percent to 457,847 tons in September from 387,564 tons in the previous month. However, imports fell 10% to 3.26 million tons in the first nine months of 2013 from 2012. China’s trade balance fell to 15.2B in September from 28.5B in August. Exports fell 0.3% YoY while imports rose 7.4%. Data released this morning showed that Chinese CPI rose to 3.1% from 2.6 % while PPI came at -1.3%

FindYourFX.com is one of the best Forex broker website and also provides the highest Forex cashback to our clients. We have already collected more than 30 the most famous and trustable Forex brokers. We are providing the detailed broker detailed information from 6 different view angles, such as deposit and withdraw fund, trading platform and product spread. We also provide a multiple dimension Forex broker comparison function to allow our visitors to find the most suitable Forex broker.

Posted in Market Updates | Leave a comment

FXEmpire Lawmakers Bicker While Consumers Worry

Today is Columbus Day in the US, one of the official government holidays. This means that banks are closed today, government workers are off and many private businesses are closed for the 3day weekend. It is considered a lesser holiday and therefore the outside of banks, financial markets are operating. US lawmakers are technically off today also and President Obama is booked giving Columbus Day speeches and making public appearances. This is day Americans celebrate the discovery of the Americas by Christopher Columbus. Elsewhere there was little major data except the weekend release of Chinese trade balance numbers, which should cause a stir in early trading. The trade balance printed well below expectations showing a significant drop in exports while imports boomed narrowing the gap between imports and exports. The numbers show a stabilizing of the internal economic situation in China which is helping to support the New Zealand dollar which has risen to trade at 0.8332. The Australian dollar is caught between a rock and a hard place as they rely on their number one trading partner for sales of ore and minerals used in manufacturing and production, but with exports falling there is a likelihood that demand for these products could wane. The Aussie is trading at 0.9468 in the green this morning but the support is coming off the weakness in the US dollar, which tumbled after news this weekend that lawmakers could not reach agreement on debt ceiling and budget so the government remains closed and the debt ceiling moves closer.
The US dollar declined this morning to trade at 80.38 giving up 12 points after its positive climb on Thursday and Friday, when it looked like lawmakers would reach an agreement. Also on Friday, the University of Michigan consumer sentiment report printed below expectations, which can be accounted for by the bickering in political circles and the ongoing government shutdown. Unfortunately an disturbance in consumer confidence extends to retail sales, unemployment and eventually GDP as consumers stop spending when they worry. The Treasury Department has determined that Thursday October 17, Friday morning as the day the government runs out of cash to pay its bills. However, it’s at the end of the month that things will get hairy—that’s when $6 billion in interest payments on outstanding government debt falls due. Basically, the US Government receives 70 cents in taxes for every dollar it spends, so it has to borrow to meet that shortfall. The government can’t suddenly cut its budget by 30 per cent—that would plunge the country into deep recession, and a range of services would be stopped or curtailed, from social security payments to health care for the elderly and government infrastructure projects like highway construction.

As traders begin to worry with only 72 hours left to reach agreements there has been a slow shift to risk off trading. Sentiment has shifted toward the Japanese yen as the safe harbor as the JPY climbs to trade at 98.30 gaining 26 points against the US dollar. The yen has also shown strength against its crosses with the EURJPY trading in the red at 133.31.

Weakness in the US dollar has given the euro additional momentum adding 23 points to trade at 1.3562 as the pound also benefits moving up to 1.5981. The pound is at risk this week with a couple major data releases including employment numbers and retail sales.

FindYourFX.com is the best Forex broker comparison website; we have already collected more than 30 world top Forex brokers on our website. We do not just provide the detailed information for each Forex broker, but we also provide the highest Forex rebate to our clients. Our mission is that let all our clients and visitors to deeply understand each Forex brokers and sharply reduced our clients trading commissions.

Posted in Market Updates | Leave a comment