Central Banks are the focus of the markets.
The euro fell against a range of currencies in European trading hours Thursday as investors sold the common currency on expectations that the European Central Bank will cut its key interest rate to record lows. Markets had already factored in the rate cut, but it was the decision of the ECB to change its deposit rate to 0 and then the pessimistic statement issued by the ECB President. The Bank of England decision to increase asset purchase by 50 billion pounds, which was a widely expected pushed dollar index lower.
China surprised the markets by lowering its rate and now the markets are focused on the US Nonfarm report due later today. A poor report might for the Fed to action, or a strong report will see the USD gain against its partners.
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UPCOMING EVENTS :
2012-07-06 08:30 GMT | UK - Producer Price Index - (Jun)
2012-07-06 10:00 GMT | GERMANY - Industrial Production - (May)
2012-07-06 12:30 GMT | US - Nonfarm Payrolls - (Jun)
2012-07-06 12:30 GMT | CANADA - Unemployment Rate - (Jun)
FOREX NEWS :
2012-07-06 04:34 GMT | GBP/USD directionless, hovers above 1.55
2012-07-06 04:03 GMT | EUR/USD frozen ahead of NFP
2012-07-06 03:14 GMT | Japan may run out of money in October, Azumi warns
2012-07-06 02:31 GMT | AUD will push towards USD1.07 by mid next year - ANZ
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EURUSD : 1.23848 / 1.23854
DAILY WEEKLY MONTHLY
1.2694 | 1.2620 | 1.2565
1.2481 | 1.2452 | 1.2397
SUMMARY : Neutral
TREND : Sideway
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technicals are mixed, range trading with support 1.2343 and resistance at the 50-day MA of 1.2687. Risk/return is better elsewhere. The might be an early correction to move back to Friday's close at 1.2443 but this pair is moving randomly. The overall downtrend is back on line. The outlook remains on the daily charts to trend downwards toward the1.2285. A break above 1.25 could change to a bullish scenario.
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GBPUSD : 1.55305 / 1.55315
DAILY WEEKLY MONTHLY
1.5734 | 1.5699 | 1.5639
1.5544 | 1.5509 | 1.5449
SUMMARY : Neutral
TREND : Sideway
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technicals remain bearish and most indicators suggest downward movement, support seen at 1.5500. The implications are for weakness below 1.5484. On the verge of taking out 1.5484 Resistance at 1.5700-1.5730 is vital for the movement of the currency pair. Supports are seen at 1.5485 and then at 1.5454. The long term outlook continues to be bearish with a target of 1.5450
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USDJPY : 79.906 / 79.912
DAILY WEEKLY MONTHLY
80.515 | 80.300 | 79.980
79.450 | 79.235 | 78.915
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technicals are reading bullish as the ranging upward movement continues; support is at 21 day MA (79.57). The USDJPY did indeed exceed 80 but conviction on the move is lacking, it will need to break above 80.61 with conviction. Supports are seen at 79.55 and then at 79.12 where as resistance levels are seen at 80.63, 81.15 and then at 81.45.
Source: FX Central Clearing Ltd, (http://www.fxcc.com)