Article Summary:

Wskxw.com is dedicated to providing quality information on the subject of Forex Trading for beginners, and in particular, on the various trading systems, and brokers, and tools.All eyes are on the US ISM Manufacturing number due out this morning at 10AM EST.  The market is hoping to see a rise in this number as that would indicate business activity is picking up.  So far this morning, we are seeing mild risk-taking as the Euro has rebounded from 4 days [...]


Article Content:

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4



/* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:”"; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;}


All eyes are on the US ISM Manufacturing number due out this morning at 10AM EST.  The market is hoping to see a rise in this number as that would indicate business activity is picking up.  So far this morning, we are seeing mild risk-taking as the Euro has rebounded from 4 days of selling. 

US stock market futures are up as are gold and oil.

Let’s examine how this is affecting world currencies:

Aussie (AUD):  The Aussie is currently trading down this morning despite the risk-taking tone this morning as traders are gearing up for the RBA rate decision due out overnight.  The market is expecting a 25 basis point hike to 4%, but this could trigger a bearish scenario.  If they do raise rates, it is extremely likely that they will take another rate hike off of the table going forward.  There is also a chance that they don’t raise rates this time, as news that China is paring back economic stimulus could affect the Australian economy.

Kiwi (NZD):  The Kiwi is up slightly this morning benefitting from the risk trade. 

Loonie (CAD):  The Loonie is up this morning as oil prices recover and stabilize as well as a general risk-taking mood this morning.  The market is waiting for confirmation from the ISM data so it trading in a tight range until that release.  The Loonie should strengthen today if the number comes in better than expected.

Euro (EUR):  The Euro is the biggest gainer this morning as it rebounds from 4 days of weakening.  The market is gaining confidence that the plan to manage the debt crisis in Greece is acceptable and plausible which generally ties in to the risk-taking trade this morning.  Over the last four days, the thought that Euro could serve as an alternative to the US dollar as a reserve currency was largely debunked as Central banks pulled cash out of the Euro at a record pace.

Pound (GBP):  The pound is down this morning against all but the Japanese yen as housing prices slid in the UK and banks granted fewer mortgage applications last month.  The Bank of England rate decision is on tap next week but traders are more interested to see if they continue with their quantitative easing program.

Dollar (USD):   The US dollar is down this morning as part of the risk-taking trade.  Stock market futures are up as are commodities and all eyes are on the ISM Manufacturing number.  There are some figures out this morning that show that US personal incomes are up slightly, and personal spending is higher than the prior reading but missing expectations by just .1%.

Yen (JPY):  The yen is down across the board this morning as the BOJ’s top economist said that Japan’s economy is far from “achieving self-sustaining growth” as their export led recovery failed to induce consumer spending.  This also falls in line with ministers calls last week for a weaker yen.

As we can see the big news of the day is ISM Manufacturing number which will be viewed as a proxy for global economic recovery.  The only currency that is trading “out of the ordinary” is the Aussie, as the market prepares for the rate decision. 

In global markets, stocks in Asia closed generally higher and Europe is higher at the moment.  US stock markets futures are higher pre-open and oil is up to 73.47, with gold slightly higher to 1088.

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here!  Don’t miss out on the world’s fastest growing market!

 

none

———————