Alan’s Forex Blog

EURO The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4800 figure and was capped around the $1.4915 level.  Today’s intraday low was just above the 76.4% retracement of the move from $1.4920 to $1.4360.  Many data were released in the U.S. today. First, December personal income was up +0.5% while December personal spending was up +0.2%.  Second, weekly initial jobless claims increased 69,000 to 375,000, the highest level

BUY  EURUSD @1.4823, SL @1.4808, TP @1.4833 Signal Time:  January 30, 2008 17:17 GMT STATUS: -WON -

Economic News   USD Yesterday the greenback slipped sharply against most of the major currencies on the back of the news that the Fed had slashed the Fed Fund Rate and the Discount Rate by an additional 0.5%. The Federal Funded rate, which is the U.S inter-bank lending rate, was cut from 3.50% to 3.00%. While the Discount Rate, which is the rate at which U.S banks can borrow funds directly from the Reserve Bank, was slashed from 4.00% to 3.50%. The Fed has been continuously slashing the

Over the course of this week, the New York trading has been the epicenter of volume and price movement. This is largely due to the focus on US economic news. Yesterday, the remainder of the globe eagerly awaited the Federal Open Market Committee interest rate announcement (released -0.50% to 3.00%). Due to this event of uncertainty, traders were essentially forced to the sidelines and mitigate risk heading into the New York Session. Therefore, both Asia and London markets were generally calm.

Action Insight Mid-Day Report Yen Rallies on Risk Aversion again The Japanese yen started to build up some gains in European session following weakness in the European stock markets. The yen strengthens further in early US session after news that MBIA Inc., the world’s largest bond insurer, posted its biggest-ever quarterly loss on subprime-related securities. Further strength will could be seen in the Japanese yen as the US stocks is set to open lower, in particular after the big surprise in

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Yesterday at 19:15 GMT the Fed has released the FOMC statement for this month and voted to reduce the overnight lending rate 50 basis points to 3%.This reflects the lowest rates have been since June of 2005. The move was made easier after GDP numbers came out much lower than expected, mostly on negative housing growth. It is the second time in nine days, in a hopeless bid to save U.S. economy from entering a recession. Today’s policy action, combined with those taken earlier, should help to

    1 minute with ForexSurvivor   *** 16pips EURCHF Mission has been Completed (Check ‘31 Jan Asia’ box)     (31 Jan Europe) Has the dollar furnished the base? In the end a bottom should be held to allow the interpretation of NFP tomorrow that may hint a screen towards 11000 vs. chf.   Gold stuck below $940! A level mentioned a week ago & worth paying attention to – check then! Apparently, the status now is in the formation of a squeezing triangle that will