Friday, September 28, 2012

Market Update: Traders Waiting Till Next Week?

Coming Up Today
After falling steadily throughout the week, the EURUSD finally saw buying demand yesterday on the back of an encouraging Italian bond sale. Also, better than expected US economic results on Thursday led to overall gains for equities which buoyed riskier currencies. So far, the EURUSD continues to see momentum as it trades at 1.2950 this morning and has nearly erased all of its earlier losses of the week.
Looking ahead, a quiet day is expected with the only notable economic releases being Canadian GDP and US PCE figures which will be out later today. Nonetheless, with next week having a full slate of key releases starting with Chinese, US and UK Manufacturing data on Monday, UK & ECB Interest Rate Meetings on Thursday, and the US’s Non Farm Payrolls on Friday, we could see trading become volatile if forex traders begin to position themselves ahead of next week’s action.
Charts to Watch
GBPUSD: The GBPUSD keeps hitting 1.6275 resistance and failing. As such the pair could be a short candidate on ay subsequent moves above 1.6260 with stops at 1.6280.
GOLD: Gold has traditionally been a good long going into the week of a Non Farm Payroll’s release. As such, with the metal trading right around its recent highs (see chart), it could be well poised to rally next week if it closes the week above 1780.

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