Daily Analysis for TUESDAY - JULY 24th
Home Builders feeling the heat | |
Deutsche Bank issued a report on Home Builders yesterday, which was quite bearish. The USD continues to fall on Subprime worries, lack of central bank demand and military failure in the Middle East. |
Overnight News Bullets
- PD Net Core Inflation MoM/YoY out at 0.2%/1.8%, while 0.2%/1.8% expected, 0.2%/1.6% prior.
- HU Interest Rate out at 7.75%, while 7.75% expected, 7.75% prior.
Markets
- FX: JPY stronger, USD weaker. EUR weaker.
O/N Data Heat map:
EU | US | JP | UK | SZ | AU | CA | NZ | NO | SE | FR |
Calendar
Today's Highlights:
Time (GMT) | Region | Release | Consensus |
08:00 | EC | Euro-Zone Current Account (MAY) | -4.2B |
08:00 | EC | PMI Manufacturing (JUL) | 57.6 |
09:00 | EC | Industrial New Orders MoM / YoY | 1.2% / 7.7% |
12:30 | CA | Retail Sales MoM (MAY) | 0.5% |
12:30 | CA | Retail Sales Less Autos MoM (MAY) | 0.6% |
18:00 | US | Richmond Fed. Manufacturing Index (JUL) | 5 |
21:00 | US | ABC Consumer Confidence (JUL) | Prior -11 |
23:50 | JN | Merchands Trade Balance (JUN) | JPY950.0B |
23:50 | JN | Adjusted Merchands Trade Balance (JUN) | JPY817.7B |
This and Next Week’s Highlights:
Date | Region | Release |
25 July | AU | Consumer Prices, RBA Trimmed Mean, RBA Trimmed Median. |
25 July | SW | Unemployment Rate, Trade Balance. |
25 July | US | Existing Home Sales, DOE U.S. Crude Oil Inventories, Fed’s Beige Book. |
25 July | NZ | RBNZ Official Cast Rate. |
26 July | UK | Nationwide House Prices. |
26 July | SW | Economic Tendency Survey, Manufacturing Confidence, Consumer Confidence, PPI. |
26 July | GE | IFO – Business Climate, IFO Current Assessment, IFO – Expectations. |
26 July | US | Durable Goods Orders, Durables Ex Transportation, Initial Jobless Claims, Continuing Claims, New Home Sales. |
26 July | NZ | Trade Balance, Imports, Exports. |
26 July | JN | A string of CPI’s, Large Retailers Sales, Retail Trade. |
What's going on?
- EURUSD edging higher, but reluctant to make a big leap into uncharted territory. USDJPY looking quite weak now.
- Significant AUD and NZD strength. Butter, Milk and Cheese prices are going through the roof and support NZD. Another RBNZ rate hike is perhaps coming up tomorrow evening.
- Pakistan says that US military interventions on its territory is unacceptable. The US is losing the Middle East, which could lead to a long-term bear market for the USD – like after the Vietnam War.
FX
GBPCAD to test trendline resistance
EUR | USD | JPY | GBP | CHF | AUD | CAD | NZD | NOK | SEK | PLN |
+ | - | + | + | + |
FX Trading Strategies
Pair | Supp. | Resis. | Comments |
GBPCAD | 2.1550 | 2.1900 | We bought at 2.1608 target is 2.1880 38% retracment (from 2.3565-2.0840). This buy signal was generated on last night's NY close. We placed stop at 2.1548 offer. See more in Forex Trading Strategies. |
Risk warning
ForexWebTrader shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.
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