Forex Signals Everyday Market Updates, 8th Regarding July, 2011
Daily Market Updates and Trading Positions Table for trades executed for Forex Signals and Managed Forex Accounts Subscribers.
As expected the European Central Bank raised interest rates by 0.25% yesterday. This appears to have halted the slide in the EUR/USD for now at least. The ECB are in a bind at the moment as Jean Claud Trichet has inflation to fight (this being his primary mandate) while the “PIIGS” of europe are in economic strife and require interest rates as low as possible.
We observed yesterday after the announcement was given that bond yields rose in the PIIGS countries which in no way helps their situation. To make matters worse, Trichet has signalled another rate rise to come in the coming months. As the risk of default for the PIIGS continues to get higher as time goes on, any intervention by the EU/ECB just appears to be delaying the inevitable. At Forex Live Online we maintain our bearish bias on the EUR/USD for now..
On the economic calendar today we have the all important US non farm payrolls (employment figures) being released. Traders have an expectation of an increase in the number of newly employed which would indicate an improving economy. Whatever the result of the announcement, it is always difficult to know what the impact will be on the US Dollar, therefore we advocate staying on the sidelines near the event to reduce overall risk.
Forex Live Online subscribers saw another quiet trading day yesterday. Although some orders were placed no new entries were made. We are still holding our long AUD/USD position from last week which is in profit and earning some small swap on the side.
Maintain Long AUD/USD 1.0713 SL 1.0389 OPEN POSITION
Technical Focus EUR/USD
Following on from yesterday’s technical focus, we will look at the
Forex Signals Everyday Market Updates, 8th Regarding July, 2011