eToro – Forex Trading Forum

[BlueinGreen]

Morning traders,

yesterday we had some dollar corrections as EURUSD breached 1.55 up,
GBPUSD is getting close to 1.97 level again. USDJPY is holding just under 108 for now. it also seem like the AUD weakness we had for the last few days had halted at this moment after AUDUSD has encountered its support level close to 0.9300 a few days ago.

Today's reports can certainly push the market out of the current range. We have the German ZEW which is an important indicator out of Germany, and the US housing starts.
Concerning the Housing starts, many traders would look at a bad number (a slow down- a low number) as an indicator signaling the Federal Reserve not to rise interest rates as quickly as the market expect it to happen.
this can drag the USD to a more significant correction this week,
However an opposite outcome of this report could verify the words of Bernanke last week, saying the economy is no longer at risk. That might work well for the dollar at this stage.

Main Events

2:30 AUD RBA Meeting Minutes

9:30am GBP CPI y/y forecast 3.2% previous 3%

10:00am EUR German ZEW Economic Sentiment forecast -42.4 previous -41.4

1:30pm USD PPI m/m forecast 1.0% previous 0.2%

1:30pm USD Housing Starts forecast 0.98m previous 1.03m

ZEW: Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment measures institutional investor sentiment

Housing Starts: Measures the annualized number of new residential buildings that began construction during the previous month.

it might be a good day for daytrading if you keep close to whatever is happening.

Happy trading