FX Levels for Today
Abdul Khan | Jan 05, 2009 07:00PM ET
Overview
The Forex market has begun to return to some form of normality following the holidays. The EUR copped it overnight as speculation swept the market about the ECB cutting rates sooner rather than later. Elsewhere, the Yen crosses continued to show signs of recovery, and has me thinking that they may have put in a low back in Dec, but lets wait and see for further confirmation before throwing any money around.
Overall, the pullback in the likes of the EUR and AUD wont be too deep, but will give us an opportunity to add to previous longs, setting us up for the Obama rally in Jan/Feb, as stocks rally and the markets again look to buy risk.
The AUD has failed to break above 0.7200, and looks as though the New Year's Eve rally maybe running out of steam. Makes sense though - the RBA is still looking to cut rates in Feb/March, and the economic slowdown hasnt fully hit Down Under just yet.
Data for Today
US: ISM
US: Pending Home Sales
US: FOMC Minutes
Trades for Today
AUD: Sell moves towards 0.7160-80
JPY: Buy a break above 94.10
Gold: To be capped around 860 for a little while
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