US Consumers Lead Rebound

Daily Forex Fundamentals | Written by Easy Forex | Apr 29 09 01:26 GMT |

U.S. Dollar Trading (USD) weakened in New York but only after testing fresh strength in Asia on swine flu fears. Fears the stress tests will require Citibank and Bank of America to raise more capital sent bank shares lower. Helping general sentiment was the large rise in Consumer Confidence to 39.2 vs. 29.6 previously. Crude Oil down $0.60 ending the New York session at $49.42 per barrel. In US share markets, the Nasdaq was down 5 points or -0.33% and the Dow Jones was down 8 points or 0.10%. Looking ahead, Q1 GDP forecast at -4.9% vs. -5.3% previously. Also the FED meet and are expected to remain at 0-0.25% band. The Euro (EUR) was able to rebound sharply once again after testing below 1.3000 in Europe. German CPI was flat 0.0%m/m in April. Comments pouring cold water on QE speculation also help buoy the single currency in New York. Overall the EUR/USD traded with a low of 1.2965 and a high of 1.3165 before closing at 1.3145. Looking ahead, April Eurozone Consumer Confidence is forecast at -33 vs. -34 previously. The Japanese Yen (JPY) used the weak Asian stocks to make fresh gains across the board led by the EUR/JPY. USD/JPY broke below 96 yen but found a lot of support below which as sentiment reversed in the US so did the crosses direction. Overall the USDJPY traded with a low of 95.65 and a high of 96.65 before closing the day around 96.50 in the New York session. The Sterling (GBP) found support below 1.46 before rebounding on better than expected economic data. CBI Distributive trades at +3 vs. -40 the first positive reading since last year. Overall the GBP/USD traded with a low of 1.4577 and a high of 1.4773 before closing the day at 1.4675 in the New York session. The Australian Dollar (AUD) tested 0.700 before rebounding overnight as AUD/JPY buyers emerged from the month lows yesterday. Volatile market moods are making it hard to pick direction of the risk based currency. Overall the AUD/USD traded with a low of 0.6990 and a high of 0.7101 before closing the US session at 0.7070. Looking ahead, RBNZ rate call forecast at 2.5% vs. 3%. Gold (XAU) fell sharply in Asia as the USD strengthened breaking back below $900 as demand fizzled. Overall trading with a low of USD$905 and high of USD$885 before ending the New York session at USD$890 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products