Weekend Forex Line-up
• USD- Earning gains, US home sales reached to 9.4%, US equities traded low with declining stocks.
• EUR- Traded low, EU PMI hiked up to twenty-two-month highs but earned gains against GBP.
• GBP- Traded low, hovering decision of early withdrawal of stimulus plans, third-quarter GDP dropped.
• JPY- Traded low, BoJ suggests that deflation will persists till 2011
• CAD & AUD- Both have lower trade, import and export prices in Australia drops BOC suggesting intervention as an alternative.
USD: The figures of existing home sales of US in September increased by 9.4% with 5.57 million units which is far better then what was expected of around 5.35 million units.
The inventories of US existing home sales slumped down by 7.5% to a 7.8% month supply. It was the lowest level of home sales inventories since two and half years. The average home sales price dropped by 8.5% and reached to 174,900k.
JPY: The BOJ report says that pressures of deflation will persist in Japan for continuous third year. This report set the JPY trade low.
If we talk about BOJ report it suggest that the inflation rate is likely to drop by 1.3% in 2010 and 1% in 2011. The pressures due to deflation rate will propel the BOJ to maintain it‘s regulative economic policies in order to have stabilized economy.
On Thursday, Japan experienced another drop in the export sales and the media commented that the BoJ may be trying to find out an exit door from its bond purchase plan. The recent enhancement in the JPY helped to diminish the export competitiveness in Japan. On the other side, BoJ saying that considering about the exit from the bond purchase plan is not included in the economic policy decisions.
GBP- The GBP trading has mixed response from the Forex market and traded below 1.6400. GBP is expecting the short-term support of around 1.6240 equal to the lows of 19th October and resistance level of around 1.6660 equal to the highs of 15th September.
Overall, the GBP traded lower in comparison to other trading days because of the surprise drop in the third quarter GDP figures. The Q3 GDP dropped to 0.4% that was expected to have increased by 0.2%.
These are the outlook of major currencies trade at Forex trading platform along with the situation created in different nations due to various data releases.
The next week will have many things collected in its Forex trade bag as surprising figures released from different sectors have build a strong pressure over Forex trade and economic policy decisions as well.
The article expresses the various happenings of the Forex trade and the impact of different data releases on different nations of the Forex trading platform. This gives information about the Forex facts and the market position at this weekend to have an idea about the next weeks trading initials.