Each day, Finotec analysts write a detailed report on the latest developments in the currency markets. Our Forex Daily Analysis will provide you with signals and general expectations concerning majors and other pairs, supported by meticulous and clear technical and fundamental analysis.
In our Forex Daily Analysis page, you will also find: the daily share of short/long transactions for three majors as well as a list of economic indicators to be published today.
Below is a search box for past articles on forex pairs. Type in the pair or any word that you may think is relevant to see our analyst’s previous reports on the subject.
Dollar on a dipping slope again and fears of high inflation
The U.S. trade deficit will have probably narrowed in March as a weaker dollar boosted exports of machinery and food, economists said ahead of a government report today which comes out at 12:30pm GMT.Tammy Wall
09 May 2008
Print this article
Subscribe to RSS
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.5613 1.5595 1.5520 | 104.95 104.50 103.65 | 1.9700 1.9620 1.9570 | 1.0695 1.0625 1.0540 |
Support | 1.5390 1.5315 1.5285 | 102.95 102.70 102.25 | 1.9495 1.9430 1.9410 | 1.0460 1.0430 1.0335 |
The U.S. trade deficit will have probably narrowed in March as a weaker dollar boosted exports of machinery and food, economists said ahead of a government report today which comes out at 12:30pm GMT. The trade balance Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported over a given period. A rising trend has a positive effect on the nation's currency. Faster growth overseas and a dollar that has lost a quarter of its value in six years are boosting demand for American-made products, while slower U.S. consumer and business spending is limiting imports. An improvement in the trade gap may also come from slowing imports as consumers, facing falling home values and rising fuel bills, restrain spending. U.S. companies are also investing less in foreign-made equipment as concern grows that consumer demand will continue to weaken.
A smaller gap may help the U.S. avert a deeper economic downturn as the housing market continues to slump. ``Exports are one of the points of strength,'' said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. ``If we avoid a quarter of negative growth, it will largely be due to trade.'' Cisco Systems Inc., the world's biggest maker of networking equipment, is among the companies benefiting from gains abroad. The San Jose, California-based company posted sales growth of 10 percent in the third quarter, even as U.S. sales grew only 5 percent.
German whole sale price Index came in at 0.6% from an expected 0.5% which boosted the Euro somewhat this morning, EUR/USD currently trading at $1.5474 as of 8:11am GMT. The pound erased its gains against the dollar and extended declines versus the euro. The U.K. currency weakened to $1.9516 as of 6:30 am GMT, from $1.9541 yesterday. It slid to 79.12 pence per euro, from 78.78 pence.
Finotec Analysis Team
09 May 2008
Print this articleSelect Your Time Zone
Today's Economic Events
Time  |
Event |
Currency
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 12:30 | Trade Balance | CAD | Mar | 4.9B | 4.5B |  |  | |
| 12:30 | Trade Balance | USD | Mar | -62.32B | -61.3B | | | |
| 11:00 | Employment Change | CAD | Apr | 14.6K | 10.0K |  | 19.2K | |
| 11:00 | Unemployment Rate | CAD | Apr | 6.0% | 6.0% | | 6.1% | |
Survey
Will oil futures remain above $100?
Read Recent Forex Daily Analysis Reports:
Euro slumps to a two-month record against the DollarRecent signs of slowing growth suggest that the European Central Bank may cut interest rates before the end of the year
Dollar gains traction as Fed says it might raise interest...However Gains in the dollar may be limited by speculation that an industry report today will show the housing slump in the U.S is slowing the economy down
Dollar slumps for the second dayThe Dollar fell for a second day against the Euro, as doubts resurfaced about the health of the US economy