What is FX Daily Report
April 17, 2012
8:00 AM EST
Good morning Forex traders: I failed to mention one important note yesterday, and now with the release of Data out of Germany, the two pieces stand in stark contrast to one another.
Yesterday the Empire Manufacturing data that crossed the wire was abysmal. there was just no other description for it. With a forecast for a reasonably healthy 18.00 (down from 20.21 last reading) the print came in at only 6.56. Should the other data from Richmond and Philadelphia come in as poorly, that would certainly bode ill for spring time manufacturing here in the east.
Compare that with the German ZEW (an economic sentiment reading that aims to forecast trends 6 months in advance) which read 23.4, as against a projection of 20.3, and you have a pretty stark contrast. The European giant is doing it’s best to pull out of a localized slowdown, and not get drug under by the rest of the European laggards. The deck is certainly stacked against them.
The UK readings we were looking for today, came in line with expectations, and as such triggered no real opportunities. However, the European inflation data came in slightly higher, further complicating the ECB task of keeping inflation under their stated target, while trying desperately to spur growth somehow.
Coming up we have the US data at 8:30AM EST, but no real surprises are expected in the housing data. As such, we will likely be directed by outside forces today. Goldman Sachs reports double earnings, coming in at 2.1B. This has equities looking higher as of this hour, with the stock futures up firmly for a good opening. Of course, that can evaporate quickly, and even reverse at the open.
What Is FX Daily Directions
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Here are the major pairs we are watching and their daily pivots:
EUR—S1-1.3040, P-1.3095, R1-1.3195
GBP—S1-1.5840. P-1.5875, R1-1.5930
AUD—S1-1.0316, P-1.0350, R1-1.0385
What Is FX March Results: +220.0 pips
What Is FX Year-To-Date Results: +2,073.0 pips