Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
DOLLAR: The Dollar is under mild pressure this morning as prices appear to be consolidating near the middle of this week’s trading range. Thursday’s severe pullback from three-week highs was not triggered by overseas events but by a fairly good set of US economic data that went a long way towards soothing market anxiety. Positive developments from the Euro zone are also weighing on the Dollar of course but there have been too many “false dawns” with the Greek debt situation for safe-haven support to be fully taken out of the equation. If global equity markets head into the holiday weekend with some positive momentum, the Dollar will have some difficulty putting together any sustained recovery from yesterday’s slide. The Dollar may find support near the 79.20 level this morning but should avoid any sharp downside moves unless there is substantial progress with the Greek debt situation over the next few hours.
EURO: The March Euro has ground out a modest gain today as trading has quieted down from the choppy and volatile price action seen earlier in the week. There have been some clear signs of progress with resolving Greek’s debt problems but a final agreement remains as elusive as ever. A stronger than expected German PPI number may help to reinforce this morning’s early strength but upside momentum in the March Euro will only hold out as long as the market remains optimistic that Greek debt problems will be resolved fairly soon. Otherwise, prices may end up having a swift retest of Thursday’s lows. The March Euro may find resistance near the 131.90 level but will not come close to the early February highs until Greek debt concerns are in the market’s rear-view mirror.
YEN: The March Yen continues to tumble lower this morning and is coming close to the post-intervention lows of late October. The governor of the Bank of Japan stated that they will maintain a loose Japanese monetary policy, which along with positive vibes out of the Euro zone will likely keep the March Yen firmly in a downward trajectory. The March Yen may find support near the 126.10 level this morning, and has a good chance to go into the US holiday weekend at a fresh 7-month low.
SWISS: The March Swiss was able to extend yesterday’s rebound this morning but may lose further ground to the Euro if risk concerns continue to ease. Comments by the Swiss economic minister that that Swiss Franc continues to be overvalued may not bode well for any return towards the recent highs but for now, the March Swiss will continue to reflect the ebb and flow of Euro zone debt optimism. The March Swiss may find resistance near the 109.15 level and should stay well clear of the recent lows unless the Greek situation flares up yet again.
POUND: The March Pound has put together a sizable rally from yesterday’s lows as prices have found considerable support from strong UK Retail Sales numbers this morning. Recent UK economic data has not been consistently positive enough to avoid fresh quantitative easing measures being introduced earlier this month. However, a surge in broad-market sentiment may help to lift the March Pound up to a fresh 3-month high during the near future. The March Pound may find resistance near the 158.60 level later today and should hold onto early strength through the end of this week’s trading.
CANADIAN DOLLAR: The March Canadian made a quick return to the recent highs during yesterday’s session and has been a major beneficiary of renewed market optimism. Canadian economic data has mostly been a secondary factor during this recent upmove but today’s Canadian CPI number has the potential to underpin prices close to new high ground. The March Canadian may find resistance near the 100.50 level this morning and would not need much in the way of positive news from either side of the Atlantic to finish the week with a fresh 31/2 month high.
TODAY’S MARKET IDEAS: The Dollar will start out today’s session with a slightly negative tone but any sort of risk flare-up from the Euro zone would send prices heading back towards the recent highs. If global markets can head into this weekend with some sort of optimistic risk attitude, however, the March Canadian stands a good chance of reaching new highs during the near future.
Currencies: Heading Into the Weekend On a Positive Will Help Canadian
by Dave Hightower on February 17, 2012
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
DOLLAR: The Dollar is under mild pressure this morning as prices appear to be consolidating near the middle of this week’s trading range. Thursday’s severe pullback from three-week highs was not triggered by overseas events but by a fairly good set of US economic data that went a long way towards soothing market anxiety. Positive developments from the Euro zone are also weighing on the Dollar of course but there have been too many “false dawns” with the Greek debt situation for safe-haven support to be fully taken out of the equation. If global equity markets head into the holiday weekend with some positive momentum, the Dollar will have some difficulty putting together any sustained recovery from yesterday’s slide. The Dollar may find support near the 79.20 level this morning but should avoid any sharp downside moves unless there is substantial progress with the Greek debt situation over the next few hours.
EURO: The March Euro has ground out a modest gain today as trading has quieted down from the choppy and volatile price action seen earlier in the week. There have been some clear signs of progress with resolving Greek’s debt problems but a final agreement remains as elusive as ever. A stronger than expected German PPI number may help to reinforce this morning’s early strength but upside momentum in the March Euro will only hold out as long as the market remains optimistic that Greek debt problems will be resolved fairly soon. Otherwise, prices may end up having a swift retest of Thursday’s lows. The March Euro may find resistance near the 131.90 level but will not come close to the early February highs until Greek debt concerns are in the market’s rear-view mirror.
YEN: The March Yen continues to tumble lower this morning and is coming close to the post-intervention lows of late October. The governor of the Bank of Japan stated that they will maintain a loose Japanese monetary policy, which along with positive vibes out of the Euro zone will likely keep the March Yen firmly in a downward trajectory. The March Yen may find support near the 126.10 level this morning, and has a good chance to go into the US holiday weekend at a fresh 7-month low.
SWISS: The March Swiss was able to extend yesterday’s rebound this morning but may lose further ground to the Euro if risk concerns continue to ease. Comments by the Swiss economic minister that that Swiss Franc continues to be overvalued may not bode well for any return towards the recent highs but for now, the March Swiss will continue to reflect the ebb and flow of Euro zone debt optimism. The March Swiss may find resistance near the 109.15 level and should stay well clear of the recent lows unless the Greek situation flares up yet again.
POUND: The March Pound has put together a sizable rally from yesterday’s lows as prices have found considerable support from strong UK Retail Sales numbers this morning. Recent UK economic data has not been consistently positive enough to avoid fresh quantitative easing measures being introduced earlier this month. However, a surge in broad-market sentiment may help to lift the March Pound up to a fresh 3-month high during the near future. The March Pound may find resistance near the 158.60 level later today and should hold onto early strength through the end of this week’s trading.
CANADIAN DOLLAR: The March Canadian made a quick return to the recent highs during yesterday’s session and has been a major beneficiary of renewed market optimism. Canadian economic data has mostly been a secondary factor during this recent upmove but today’s Canadian CPI number has the potential to underpin prices close to new high ground. The March Canadian may find resistance near the 100.50 level this morning and would not need much in the way of positive news from either side of the Atlantic to finish the week with a fresh 31/2 month high.
TODAY’S MARKET IDEAS: The Dollar will start out today’s session with a slightly negative tone but any sort of risk flare-up from the Euro zone would send prices heading back towards the recent highs. If global markets can head into this weekend with some sort of optimistic risk attitude, however, the March Canadian stands a good chance of reaching new highs during the near future.
Tags: Canadian, Currency, Dollar, Euro, FOREX, Pound, Swiss, Yen
About Dave Hightower