Markets Trying To Find A Direction

Daily Forex Fundamentals | Written by AC-Markets | Aug 31 09 08:09 GMT |

Market Brief The Greenback ended the past week mixed against major currencies trading in a range bound, lower against the Aussie, Kiwi and Yen but higher against Lonnie and Cable which was the weakest currency versus majors loosing 1.4% against the dollar, while Euro & Swiss franc was almost unchanged , falling 0.1% and 0.2% respectively. Crude Oil remained trading above $70 per barrel after reaching $75 earlier in the week, meanwhile U.S. stocks closed at its highest levels in 2009 with Standard and Poor's 500 Index advancing 0.3% to 1,028.93. The Dow Jones Industrial Average added 0.4% to 9,544.20, and Nasdaq increased by 0.4% to 2,028.77. Economic data released last week is giving more evidence of economic recovery. From the Euro Zone, Confidence rose in economic, consumer, services and industrial sectors. In Germany the biggest economy in the Euro Zone IFO business climate rose to 90.5, Gfk consumer confidence rose to 3.7. Meanwhile UK second quarter GDP was revised slightly upwards QoQ to shrink by 0.7%. Japanese unemployment rose more the expected to 5.7%. The better news came from the U.S. with second quarter GDP left unrevised at -1.0% where expectations were to contract further by 1.4%. Durable goods rose 4.9% in July which was much higher than expected, and new home sales rose to 433,000 in July. This week is expected to be more exiting and probably a break out from the recent ranges could be seen. The main event risk for the US Dollar is on Wednesday, where the Fed's last meeting minutes will be released. On Thursday the ISM non-manufacturing is expected to rise to 11 months high of 48.0 in Aug and Friday could be volatile with the release of the Non Farm Payrolls which is expected to have its smallest drop in a year. Away from the US, we have two central banks meetings, the ECB and RBA. Both banks are expected to keep rates unchanged at 1% and 3%. From ECB focus will be on Trichet's comments on recent economic data and ECB's covered bond purchase program. RBA Focus will be on any affirmation on markets view that the easing cycle is already over and RBA could be the first to remove policy accommodations ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.