FXSignalZone?
June 4, 2007 11:00 AM New York
Outlook:
June 4, 11:00 AM New York: The dollar has been on the defensive since early in the US session when an uptick in PPI from the Eurozone and strong sentiment in favor of the single currency from ECB Governor Trichet lifted EUR while sinking USD across the board. After a busy Thursday/Friday, we start this week on a quiet note in terms of incoming economic fundamentals. There is little news to trade on before the first round of Australian data on Tuesday evening, followed by central bank decision from UK and Eurozone on Wednesday. As such, we remain on the sidelines while monitoring for potential carry unwinding opportunities in AUDJPY, where a higher highs / lower lows formation signifies a possible reversal.
Confidence Rankings:
1 USDCAD: Near Term: Bearish Medium Term: Bullish
2 AUDUSD: Near Term: Bearish Medium Term: Bullish
3 USDJPY: Near Term: Bearish Medium Term: Bullish
4 GBPUSD: Near Term: Neutral Medium Term: Neutral
5 USDCHF: Near Term: Neutral Medium Term: Bullish
6 EURUSD: Near Term: Neutral Medium Term: Bearish
FXSignalZone?
June 4, 2007 11:00 AM New York
USDCAD accelerated its freefall on rising commodity prices and technical momentum eclipsing last week?s slightly disappointing GDP out of Canada. A breach of the multimonth channel is increasingly bearish with Canada?s PMI, housing, and jobs data likely to support the loonie rally further this week.
Short Term: Bearish
Medium Term: Strength in commodities and recovery in Canada?s employment bodes well for the loonie in weeks to come.
Trading Blotter:
No open positions at this time.