UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period.
UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period. The figures will reinforce dovish comments from BOE policymakers delivered in testimony to the Parliament’s Treasury Committee, where governor Mervyn King downplayed the stronger-than-expected second quarter GDP result to stress lingering uncertainty about the recovery in general and inflation in particular, signaling monetary policy is firmly stuck in accommodative territory for the time being.
Trading Tactics
A clear uptrend could be an opportunity to Buy GBP/USD.
The buying point is at 1.5627; Pivot point highest level is the take profit at 1.5695; Pivot point is the stop loss at 1.5590
The selling point is at 1.5570; Fibonacci 38.2% is the take profit at 1.5450; Pivot point is the stop loss at 1.5650
Technical: Sterling forms a new high and may continue the minor uptrend. A move back higher could set up a test of 1.5695
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator gives a neutral signal.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
EUR-USD It looks more likely that it would rise to 1.3036 - 1.3076 from 1.2981 or 1.2960. After which a downside move is expected.
USD-CHF There are initial signs of a good corrective recovery towards 1.0595 or even 1.0614. Supports at 1.0552 and 1.0528 zone.
GBP-USD While below 1.5619 - 1.5643 it is more likely to fall further towards 1.5573 or 1.5551. Premature rise above 1.5643 could see it rising above 1.5687 zone.
USD-JPY There are initial signs of a good corrective recovery towards 87.79 or even 87.96. Supports at 87.37 and 87.12 zone.
USD-CAD It should trade higher to 1.0420 while 1.0360 or 1.0344 offers support. Stop loss below 1.0328 zone.
NZD-USD Support at 0.7264 or 0.7239 should hold the downside for a correction to above 0.7321 zone.
AUD-USD Market should pop up towards 0.8979 or 0.9002 this bullish scenario would be damaged if 0.8920 - 0.8884 zone is broken, a severe break down could then occur.
EUR-JPY It looks more likely that it would rise to 114.53 - 115.39 from 113.45 or 113.02. After which a downside move is expected.
EUR-CHF Preferred view is for a fall to 1.3724 - 1.3692 while 1.3775 - 1.3794 area resists. A clear break of 1.3857 would be bullish.
EUR-GBP Current fall is near an end of wave around 0.8308 zone, a rally should then procede to above 0.8360. Fall below 0.8285 would cancel this scenario.
EUR-CAD It should try higher up to 1.3504 - 1.3543. Entry point 1.3466 or 1.3444. After this rise, a correction is expected.
EUR-NZD Current upmove should be ended around 1.7900 - 1.7960. Any correction consolidation should find support in 1.7795 - 1.7751 zone.
EUR-AUD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.4632 or 1.4640 if support around 1.4510 hold. After which a pullback to 1.4510 - 1.4464 zone is possible.
GBP-CHF A corrective rise should ideally test 1.6544 or even higher than 1.6605. Supports are at 1.6425. Stop loss below 1.6397 zone.
GBP-JPY There are initial signs of a good corrective recovery towards 136.99 or even 137.35. Supports at 136.17 and 135.71 zone.
GBP-CAD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.6221 or 1.6261 if support around 1.6149 hold. After which a pullback to 1.6149 - 1.6120 zone is possible.
GBP-AUD Current rise should end around 1.7576. Objectives of this downmove are 1.7301 or 1.7138. A rise above 1.7688 is again bullish.
CAD-JPY It looks more likely that it would rise to 85.13 - 86.07 from 84.10 or 83.63. After which a downside move is expected.
NZD-JPY There is bearish potential for a fall to 63.18 while 63.86 - 64.07 resist. After this fall a recovery up to 64.07 or 64.28 is expected.
AUD-JPY No comment!
XAG-USD It may meet resistance in 17.50 - 17.52 zone for a drift down to 17.31 zone, after which bounce to 17.71 is anticipated.
XAU-USD It should try higher up to 1164.96 - 1167.60. Entry point 1162.32 or 1160.31. After this rise, a correction is expected.
EUR-USD Resistances lie around 1.3021 and 1.3044. It should test lower towards 1.2950 zone. A clear break of 1.2990 would be bearish.
USD-CHF Uptrend is still intact in a triangle configuration. It should continue to rally to 1.0643 or 1.0670 if support around 1.0576 hold. After which a pullback to 1.0576 - 1.0544 zone is possible.
GBP-USD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.5633 or 1.5648 if support around 1.5546 hold. After which a pullback to 1.5546 - 1.5518 zone is possible.
USD-JPY Current rise seems to be over near 87.94 or 88.31 for a retracement towards 87.57 - 87.37 area.
USD-CAD It looks set for gains to 1.0412. Supports at 1.0305 and 1.0277. A break of 1.0199 will damage this bullish structure.
NZD-USD There are initial signs of a good corrective recovery towards 0.7364 or even 0.7381. Supports at 0.7323 and 0.7299 zone.
AUD-USD There are initial signs of a good corrective recovery towards 0.9046 or even 0.9062. Supports at 0.9012 and 0.8993 zone.
EUR-JPY Uptrend is still intact in a triangle configuration. It should continue to rally to 114.81 or 114.85 if support around 113.82 hold. After which a pullback to 113.82 - 113.51 zone is possible.
EUR-CHF Uptrend is still intact in a triangle configuration. It should continue to rally to 1.3858 or 1.3846 if support around 1.3734 hold. After which a pullback to 1.3734 - 1.3703 zone is possible.
EUR-GBP Prefer a fall to 0.8334 or 0.8306. Then a correction to 0.8375 is anticipated. A clear break of 0.8279 is again bearish.
EUR-CAD It should trade higher to 1.3511 while 1.3428 or 1.3400 offers support. Stop loss below 1.3371 zone.
EUR-NZD Market should hold major support at 1.7636 before rising towards 1.7779 or even 1.7834 limit.
EUR-AUD It looks set for gains to 1.4449. Supports at 1.4372 and 1.4348. A break of 1.4295 will damage this bullish structure.
GBP-CHF Uptrend is still intact in a triangle configuration. It should continue to rally to 1.6631 or 1.6645 if support around 1.6439 hold. After which a pullback to 1.6439 - 1.6386 zone is possible.
GBP-JPY Uptrend is still intact in a triangle configuration. It should continue to rally to 137.84 or 138.04 if support around 136.25 hold. After which a pullback to 136.25 - 135.76 zone is possible.
GBP-CAD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.6163 or 1.6235 if support around 1.6080 hold. After which a pullback to 1.6080 - 1.6035 zone is possible.
GBP-AUD It should trade higher to 1.7351 while 1.7185 or 1.7149 offers support. Stop loss below 1.7018 zone.
CAD-JPY While below 85.15 - 85.50 it is more likely to fall further towards 84.50 or 84.20. Premature rise above 85.50 could see it rising above 86.11 zone.
NZD-JPY Currently uptrend should end around 64.94 - 64.89 area. A correction down to below 63.82 is expected. A rise above 65.32 will abort the expected correction.
AUD-JPY Currently uptrend should end around 79.57 - 79.76 area. A correction down to below 78.55 is expected. A rise above 80.21 will abort the expected correction.
XAG-USD Market should not go lower than 17.63 - 17.42. After this move down it should go up to 17.94 - 18.06 area.
XAU-USD Market should not go lower than 1159.95 - 1150.87. After this move down it should go up to 1174.47 - 1179.92 area.
The Euro hit a one-week high against the US Dollar as risk appetite held up overnight.
The Euro hit a one-week high against the US Dollar as risk appetite held up overnight. A tame European calendar puts the onus on US consumer confidence data and another round of second-quarter earnings reports. The Euro inched higher in overnight trade, adding nearly 0.2 percent and reaching a high of 1.3017 to the US Dollar, the strongest in a week. The British Pound was little changed, tracking sideways in a narrow range below the 1.55 figure.
Trading Tactics
A clear uptrend could be an opportunity to buy EUR/USD.
A buying point is at 1.2988; Pivot point is the take profit at 1.3075; Fibonacci 23.6% is the stop loss at 1.2900
A selling point is at 1.2880; Fibonacci 50% is the take profit at 1.2775; Pivot point is the stop loss at 1.2960
Technical: Euro breaks standard error channel middle line upwards and may continue the major uptrend. A move back higher could set up a test of 1.3075
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD is in a bullish direction; RSI (Relative Strength Index) and Momentum are pointing upwards; stochastic oscillator crosses %D line downwards.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
EUR-USD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.3008 or 1.3041 if support around 1.2959 hold. After which a pullback to 1.2959 - 1.2936 zone is possible.
USD-CHF It looks more likely that it would rise to 1.0540 - 1.0595 from 1.0473 or 1.0446. After which a downside move is expected.
GBP-USD One move lower to 1.5427 or 1.5364 is anticipated while below 1.5505 - 1.5536 area. Stop loss above 1.5583 zone.
USD-JPY Current move should be supported in 86.85 - 86.57 zone for a rise to 88.03. A break below 86.25 opens the way down.
USD-CAD Market should not go lower than 1.0313 - 1.0288. After this move down it should go up to 1.0355 - 1.0372 area.
NZD-USD Currently uptrend should end around 0.7376 - 0.7377 area. A correction down to below 0.7277 is expected. A rise above 0.7416 will abort the expected correction.
AUD-USD Currently uptrend should end around 0.9038 - 0.9065 area. A correction down to below 0.8958 is expected. A rise above 0.9103 will abort the expected correction.
EUR-JPY While below 113.51 it is more likely to fall further towards 112.86 or 112.56 level.
EUR-CHF Currently uptrend should end around 1.3685 - 1.3656 area. A correction down to below 1.3570 is expected. A rise above 1.3687 will abort the expected correction.
EUR-GBP It should test 0.8444 area after which a sell off down to 0.8343 or extended to 0.8297 area is expected.
EUR-CAD It should trade lower to 1.3359. Resistances are at 1.3455 and 1.3494. A break of 1.3552 is bullish, confirmed by a close above 1.3473.
EUR-NZD One more dip to 1.7683 or 1.7646 is likely followed by a grind higher to 1.7749 - 1.7779. After which it can resume its downtrend.
EUR-AUD Support at 1.4382 or 1.4358 should hold. Then a correction to above 1.4491 is anticipated. A clear break of 1.4320 is again bearish.
GBP-CHF A corrective rise should ideally test 1.6330 or even higher than 1.6417. Supports are at 1.6195. Stop loss below 1.6099 zone.
GBP-JPY Should fall around 134.14 while below 134.58 - 135.09 zone. Then a recovery up to above 135.09 is expected.
GBP-CAD Should test support at 1.5933 while below 1.5991. If support at 1.5933 holds it can rise up to 1.6061, if not it should fall to below 1.5875 zone.
GBP-AUD There are initial signs of a good corrective recovery towards 1.7236 or even 1.7268. Supports at 1.7151 and 1.7098 zone.
CAD-JPY It looks more likely that it would rise to 84.69 - 85.22 from 83.97 or 83.71. After which a downside move is expected.
NZD-JPY A correction down to 63.31 or lower is now expected from 63.90 or 64.12. A break above 64.49 is needed to turn bullish.
AUD-JPY Current upmove should end around 78.62 - 78.82 area. A correction down to 77.90 or even 77.38 is expected. A rise above 79.23 will abort the expected correction.
XAG-USD It should trade higher to 18.30 while 18.08 or 18.02 offers support. Stop loss below 17.87 zone.
XAU-USD Market should not go lower than 1181.82 - 1177.47. After this move down it should go up to 1189.27 - 1192.37 area.
The Pound remains trading higher, supported by improved market confidence, and moving at 3-month highs above 1.5470, with room for further appreciation, according to technical analyst at Commerzbank.
The Pound remains trading higher, supported by improved market confidence, and moving at 3-month highs above 1.5470, with room for further appreciation, according to technical analyst at Commerzbank. The Sterling is biased to the upside, trading on an uptrend channel from May lows, targeting 1.5525/60 area, says Jones: "Short to medium term, the market has recently severed its 1.5310 down channel.
Trading Tactics
A clear uptrend could be an opportunity to Buy GBP/USD.
The buying point is at 1.5467; Pivot point is the take profit at 1.5565; Fibonacci 23.6% is the stop loss at 1.5400
The selling point is at 1.5380; Fibonacci 61.8% is the take profit at 1.5270; Pivot point is the stop loss at 1.5495
Technical: Sterling breaks the previous resistance level and forms a new support on moving averages line. A move back higher could set up a test of 1.5410
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line with a higher histogram; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator crosses %D line in oversold area.
*Analysis is for information purposes only and does not constitute advice in any form. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
EUR-USD Uptrend is still intact in a triangle configuration. It should continue to rally to 1.2967 or 1.2989 if support around 1.2892 hold. After which a pullback to 1.2892 - 1.2855 zone is possible.
USD-CHF It should trade higher to 1.0597 while 1.0502 or 1.0472 offers support. Stop loss below 1.0441 zone.
GBP-USD Current rise seems to be over near 1.5436 or 1.5497 for a retracement towards 1.5374 - 1.5337 area.
USD-JPY Currently uptrend should end around 87.43 - 87.67 area. A correction down to 87.05 - 86.90 is expected. A rise above 87.97 will abort the expected correction.
USD-CAD Market should not go lower than 1.0353 - 1.0325. After this move down it should go up to 1.0399 - 1.0416 area.
NZD-USD One move lower to 0.7236 or 0.7200 is anticipated while below 0.7281 - 0.7298 area. Stop loss above 0.7326 zone.
AUD-USD Current rise should end around 0.8995. Objectives of this downmove are 0.8922 or 0.8874. A rise above 0.9019 is again bullish.
EUR-JPY Currently uptrend should end around 113.48 - 113.36 area. A correction down to below 111.96 is expected. A rise above 113.89 will abort the expected correction.
EUR-CHF Current rise seems to be over near 1.3608 or 1.3671 for a retracement towards 1.3544 - 1.3512 area.
EUR-GBP It is likely to fall towards 0.8346 - 0.8310 as its corrective rally could falter in 0.8414 - 0.8446 area. Stop above 0.8519 zone.
EUR-CAD It looks more likely that it would rise to 1.3488 - 1.3595 from 1.3345 or 1.3291. After which a downside move is expected.
EUR-NZD Market should hold major support at 1.7612 before rising towards 1.7879 or even 1.7996 limit.
EUR-AUD One more dip to 1.4366 - 1.4320 is likely followed by a grind higher to 1.4451 - 1.4490. After which it can resume his downtrend.
GBP-CHF Current rise seems to be over near 1.6261 or 1.6379 for a retracement towards 1.6142 - 1.6077 area.
GBP-JPY Current rise seems to be over near 134.88 or 135.69 for a retracement towards 134.07 - 133.59 area.
GBP-CAD Strength can extend to 1.6047 or even 1.6124 as declines are expected to find support at 1.5971 or 1.5898. Stop Loss below 1.5826 zone.
GBP-AUD Current upmove should continue up to 1.7426. Supports at 1.7186 and 1.7128. Stop Loss below 1.7070 limit.
CAD-JPY Currently uptrend should end around 84.76 - 84.69 area. A correction down to below 83.70 is expected. A rise above 85.05 will abort the expected correction.
NZD-JPY While below 63.64 - 63.93 it is more likely to fall further towards 63.14 or 62.93. Premature rise above 63.93 could see it rising above 64.34 zone.
AUD-JPY Currently uptrend should end around 79.01 - 78.76 area. A correction down to below 77.61 is expected. A rise above 79.14 will abort the expected correction.
XAG-USD Should test support at 18.02 while below 18.10. If support at 18.02 holds it can rise up to 18.23, if not it should fall to below 17.93 zone.
XAU-USD It is a triangle configuration. Market should break either side. Acceleration should occur above 1204.05 or under 1183.43 limits.
EUR-USD While below 1.2971 - 1.3051 it is more likely to fall further towards 1.2756 or 1.2596.
USD-CHF Market should hold major support at 1.0419 before rising towards 1.0601 or even 1.0667 limit.
GBP-USD Current rise seems to be over near 1.5436 or 1.5540 for a retracement towards 1.5332 - 1.5273 area.
USD-JPY It should test 88.18 area after which a sell off down to 86.61 or extended to 85.86 area is expected.
USD-CAD While above 1.0353 - 1.0276 zone a corrective dip could test 1.0431 or 1.0515.
NZD-USD It should trade higher to 0.7364 while 0.7150 or 0.7104 offers support. Stop loss below 0.6936 zone.
AUD-USD It should try higher up to 0.8970 - 0.9083. Entry point 0.8858 or 0.8802. After this rise, a correction is expected.
EUR-JPY It should be subject to more sell off towards 110.79 or 108.73. Corrective upward swings should face resistance around 115.14 area. A break of 115.41 is bullish.
EUR-CHF It should try higher up to 1.3642 - 1.3741. Entry point 1.3542 or 1.3475. After this rise, a correction is expected.
EUR-GBP It looks more likely that it would rise to 0.8498 - 0.8622 from 0.8346 or 0.8284. After which a downside move is expected.
EUR-CAD It looks more likely that it would rise to 1.3627 - 1.3872 from 1.3324 or 1.3202. After which a downside move is expected.
EUR-NZD While above 1.7690 - 1.7440 zone a corrective dip could test 1.7941 or 1.8263.
EUR-AUD While above 1.4366 - 1.4164 zone a corrective dip could test 1.4568 or 1.4804.
GBP-CHF It should trade higher to 1.6396 while 1.6125 or 1.6051 offers support. Stop loss below 1.5977 zone.
GBP-JPY It should be subject to more sell off towards 132.05 or 129.36. Corrective upward swings should face resistance around 138.36 area. A break of 137.71 is bullish.
GBP-CAD It looks more likely that it would rise to 1.6180 - 1.6381 from 1.5888 or 1.5787. After which a downside move is expected.
GBP-AUD While below 1.7456 - 1.7590 it might drop to 1.6927 or 1.6659.
CAD-JPY It should test 86.79 area after which a sell off down to 82.58 or extended to 80.84 area is expected.
NZD-JPY It should trade higher to 64.55 while 62.22 or 61.71 offers support. Stop loss below 59.89 zone.
AUD-JPY It should be subject to more sell off towards 75.91 or 73.45. Corrective upward swings should face resistance around 82.02 area. A break of 80.85 is bullish.
XAG-USD It may attempt a test higher to 18.19 - 18.44 after which weakness may set it to a drift down to below 17.61 limit.
XAU-USD One more dip to 1181.75 is likely followed by a grind higher to 1202.62. After which it can resume its downtrend.
EUR-USD It should trade higher to 1.2968 while 1.2853 or 1.2815 offers support. Stop loss below 1.2778 zone.
USD-CHF One more dip to 1.0412 is likely followed by a grind higher to 1.0498. After which it can resume its downtrend.
GBP-USD It should trade higher to 1.5320 while 1.5205 or 1.5175 offers support. Stop loss below 1.5090 zone.
USD-JPY Market should hold major support at 86.16 before rising towards 87.32 or even 87.70 limit.
USD-CAD No comment!
NZD-USD Currently uptrend should end around 0.7260 - 0.7315 area. A correction down to below 0.7139 is expected. A rise above 0.7382 will abort the expected correction.
AUD-USD It should try higher up to 0.8943 - 0.9011. Entry point 0.8875 or 0.8836. After this rise, a correction is expected.
EUR-JPY Difficult to predict the next move. If first down it should hold 111.05 or 110.50. If first up it should face resistance in 112.41 - 113.21 zone to 110.50 zone.
EUR-CHF It should test 1.3533 area after which a sell off down to 1.3372 or extended to 1.3297 area is expected.
EUR-GBP It should trade higher to 0.8480 while 0.8435 or 0.8419 offers support. Stop loss below 0.8404 zone.
EUR-CAD There is bearish potential for a fall to 1.3360 - 1.3324 while 1.3395 - 1.3419 resist. After this fall a recovery up to 1.3419 or 1.3444 is expected.
EUR-NZD Market should not go lower than 1.7764 - 1.7689. After this move down it should go up to 1.7889 - 1.7939 area.
EUR-AUD There is bearish potential for a fall to 1.4423 - 1.4360 while 1.4485 - 1.4521 resist. After this fall a recovery up to 1.4521 or 1.4557 is expected.
GBP-CHF It should try higher up to 1.5937 - 1.5965. Entry point 1.5909 or 1.5884. After this rise, a correction is expected.
GBP-JPY It may attempt a test higher to 132.96 - 133.66 after which weakness may set it to a drift down to 131.25 limit.
GBP-CAD There is bearish potential for a fall to 1.5822 - 1.5775 while 1.5868 - 1.5894 resist. After this fall a recovery up to 1.5894 or 1.5920 is expected.
GBP-AUD There is bearish potential for a fall to 1.7067 - 1.6968 while 1.7167 - 1.7223 resist. After this fall a recovery up to 1.7223 or 1.7279 is expected.
CAD-JPY It should be subject to more sell off towards 82.69 or 81.56. Corrective upward swings should face resistance around 85.10 area. A break of 85.23 is bullish.
NZD-JPY Corrective dips should ideally halt near 62.20 or 61.82 for one more thrust upwards towards 63.17 - 63.77 area or 64.52 in extention. Fall below 60.63 puts it back on a downward path.
AUD-JPY Corrective dips should ideally halt near 76.62 or 76.17 for one more thrust upwards towards 77.81 - 78.56 area or 79.45 in extention. Fall below 74.68 puts it back on a downward path.
XAG-USD Uptrend is still intact in a triangle configuration. It should continue to rally to 18.27 or 18.31 if support around 17.97 hold. After which a pullback to 17.97 - 17.86 zone is possible.
XAU-USD Currently uptrend should end around 1197.95 - 1203.52 area. A correction down to below 1183.82 is expected. A rise above 1212.08 will abort the expected correction.
(Reuters) - The dollar slid toward a recent seven-month low versus the yen on Thursday after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy but steered clear of hinting about further easing as some had hoped.
The euro, which lost sharply after his comments sparked outflows from stocks and other risk assets, held steady at lower levels ahead of Europe's bank stress test results on Friday.
Bernanke, in testimony prepared for delivery to the Senate Banking Committee, said the U.S. economy faces "unusually uncertain" prospects.
"That 'unusually uncertain' phrase from Bernanke was very strong, prompting investors to sell stocks and buy government bonds," said a trader at a big Japanese bank.
"But in the forex market, investors are unable to react much before the stress test results, the market's main focus."
Although Bernanke said the Fed was ready to take further steps to bolster growth if needed, analysts said lack of clarity on what measures it could take prompted investors to reduce risk positions, benefiting the low-yielding yen across the board.
The dollar fell 0.7 percent to 86.47 yen, extending losses after a 0.5 percentage point fall on Wednesday, on a mixture of offers from Japanese exporters and hedging selling related to some currency-linked structured notes.
Traders said the dollar could fall fast if it breaks below a seven-month trough of 86.27 yen hit last week, with stop-loss dollar offers believed to be waiting below that level.
A relentless drop in U.S. bond yields is also reducing the allure of the dollar in comparison with the yen.
The two-year U.S. Treasury note yield fell to a record low around 0.56 percent following Bernanke's comments, shrinking the yield spread of two-year U.S. bonds over Japanese government debt to a fresh 15-month low.
Others were less convinced about the likelihood of further falls in the dollar.
The pair's 14-day relative strength index is at 33, near the 30 mark considered to indicate an oversold market.
Yuki Sakasai, a forex strategist at Barclays Capital, said the dollar/yen rate was unlikely to fall much below the seven-month low for now.
"What Bernanke has said is essentially the same as the minutes (of the Fed's June 22-23 meeting). So his comments alone are unlikely to push the dollar/yen below recent trading ranges," Sakasai said.
The rise in the yen, which gained steeply on the crosses on Wednesday, has been hampered by caution that Japanese policy makers may try to talk it down as it nears a 14-year high around 85 yen per dollar hit last November.
Deputy Finance Minister Motohisa Ikeda said on Thursday Japan wants to avoid excessive rises in the yen, but market reaction was muted.
The euro was up 0.2 percent at $1.2781, winning some reprieve after having lost nearly 1 percent on Wednesday on Bernanke's comments and tepid demand at a Portuguese debt sale.
It has some support at its 14-day moving average around $1.2742 and around $1.2720, a July 9 high.
The currency is likely to consolidate around the current levels, as few traders will be eager to push it higher before the European Union unveils the stress tests on euro zone banks.
The euro has had a good run against the dollar in recent weeks, rising to a 10-week high above $1.30 on Tuesday as traders began to bet most of the 91 European banks being examined would pass the tests.
European policy makers have expressed confidence their banks will pass, although some analysts say investors remain skeptical about the severity of the checks.
Major listed banks, which face constant investor scrutiny, are expected to pass, but the tests may show the worst problems lie with smaller players such as Spanish cajas and German landesbanks, which are mainly unlisted.
Euro/dollar 1-month risk reversal, a measure of currency sentiment, showed a slight bias for euro puts.
Traders said that was partly reflecting some fears among players that the euro may start falling after the euro zone bank stress test results.
Data from broker ICAP shows euro/dlr 1-mth risk reversal standing at 1.25/1.75%, its highest since early July.
(Additional reporting by Rika Otsuka; Editing by Michael Watson)
The dollar fell to a one-week low against the yen in Asia Thursday as Federal Reserve Chairman Ben Bernanke's bearish remarks overnight made investors wary of the direction of the U.S. economy.
While he made no mention of changes to the Fed's ultra-easy policy in his semi-annual report to Congress, Bernanke noted the economic outlook is "unusually uncertain."
Earlier in the day, the greenback fell to as low as JPY86.43, lower than JPY87.01 in New York Wednesday.
The U.S. unit was at JPY86.47 at 0450 GMT, while the ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 83.183 from 83.274 overnight.
The yen rose against the euro as well due to the knock-on effects of its surge against the dollar. It hit a two-week high as the single unit touched JPY110.35.
Japanese investors have been aggressively selling the euro so far today, and it is possible that the unit will fall below JPY110.00 later in the global day, dealers said.
It was at JPY110.45 as of 0450 GMT, down from JPY111.09 last night.
Meanwhile, the euro was little changed against the dollar. It was trading around USD1.2773 compared with New York overnight's USD1.2763.
The Pound slipped after Bank of England minutes showed a 7-1 vote in favor of keeping interest rates stable. This news largely diminished speculation that the BoE may begin raising rates before year end.
The Australian dollar was lower late Thursday taking its lead from weakness in share markets across most of Asia with the release of European bank stress tests Friday also provoking caution.
Market expectation
EURCHF rally running out of steam, the pair is likely to move toward CHF1.30 in coming months, although the Swiss National Bank is likely to remain sidelined.
Analysts said US dollar may fall below JPY86.00 soon if European share prices drop later in the day following weakness in Japanese shares, caused by investors reacting to Bernanke's testimony.
Such a decline should open the way for the dollar to fall to JPY85.00 or even lower because there are plenty of automated stop-loss selling orders below JPY86.00.
Once the U.S. currency enters the JPY84 zone, market participants will begin to speculate on the Japanese government taking steps to curb yen gains, said analysts.
European stocks are expected to start lower Thursday, after the Federal Reserve Chairman's comments late Wednesday on the state of the U.S. economy sent the Dow Jones Industrials Average on a one hundred point decline, and Asian markets followed in kind.
The Euro and the British Pound consolidated NY-session losses in overnight trade, with the single currency tracking sideways in a narrow range above 1.2750 while the UK unit oscillated within 30 pips above 1.5160.
The Euro and the British Pound consolidated NY-session losses in overnight trade, with the single currency tracking sideways in a narrow range above 1.2750 while the UK unit oscillated within 30 pips above 1.5160. Preliminary German Purchasing Manager Index figures are set to show that growth in the manufacturing and service sectors deteriorated to the slowest in four months. A composite Euro Zone Purchasing Manager Index reading is expected to decline for the third consecutive month to print at the lowest since February.
Trading Tactics
A clear downtrend could be an opportunity to sell EUR/USD.
A buying point is at 1.2860; Pivot point is the take profit at 1.2970; Fibonacci 50% is the stop loss at 1.2770
A selling point is at 1.2778; Pivot point is the take profit at 1.2635; Fibonacci 38.2% is the stop loss at 1.2830
Technical: Euro breaks previous support level and continues the minor downtrend. A move back lower could set up a test of 1.2635
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice histogram MACD is in a bearish direction; RSI (Relative Strength Index) and Momentum are in an uptrend; stochastic oscillator gives a bullish correction signal.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
(Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. economy faces "unusually uncertain" prospects, and that the central bank was ready to take further steps to bolster growth if needed.
"Even as the Federal Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain," Bernanke told the Senate Banking Committee.
"We remain prepared to take further policy actions as needed to foster a return to full utilization of our nation's productive potential in a context of price stability."
Bernanke, delivering the central bank's semiannual report to Congress on monetary policy, said Fed officials believe the U.S. economy is still on a path to recovery.
"Although fiscal policy and inventory restocking will likely be providing less impetus to the recovery than they have in recent quarters, rising demand from households and businesses should help sustain growth," Bernanke said.
For now, he said the Fed expects economic conditions will warrant an exceptionally low benchmark federal funds rate for an "extended period" -- repeating a vow the central bank has kept in place for more than a year.
Bernanke stopped short of describing what steps the Fed might take if growth were to falter. Analysts say the central bank could resume asset purchases or lower the rate it pays banks to park their excess reserves at the Fed.
"The testimony was not particularly optimistic," said Lawrence Glazer, managing partner of Mayflower Advisors in Boston. "It implied that the Fed had a relatively cloudy view of the future."
Stocks turned lower to trade down modestly after the testimony was released, while the dollar extended losses versus the yen and U.S. Treasuries rallied, with the 30-year bond gaining a full point.
Stocks had risen on Tuesday in part on speculation the Fed could ease monetary conditions further.
After emerging from its longest and deepest downturn since the Great Depression, the U.S. economy began expanding again about a year ago. It grew at an annualized 2.7 percent in the first quarter.
But stubbornly high unemployment, a fresh drop in housing activity and a slowdown in manufacturing have raised fears of a "double-dip" recession.
In response to the financial crisis and deep recession, the Fed slashed interest rates to near zero and bought more than $1.5 trillion in mortgage and Treasury bonds.
Bernanke spent much of his testimony reviewing tools the Fed has at its disposal to remove the extraordinary monetary stimulus pumped into the economy during the 2007-2009 crisis.
He said there was broad agreement among Fed officials that asset sales will eventually play a role in withdrawing some of that accommodation. But he also noted that any such sales would be flagged well in advance.
Bernanke said a weak job market will likely remain a drag on consumer spending, and said it would take a long time before the economy can restore the nearly 8.5 million jobs lost in 2008 and 2009.
Against that backdrop, Bernanke indicated inflation is not a concern, and is unlikely to become a problem any time soon.
He said Fed policymakers "expect continued moderate growth, a gradual decline in the unemployment rate, and subdued inflation over the next several years."
Anxiety over high debt levels in Europe have added an important element of uncertainty to the global economic recovery. Bernanke said such worries had driven U.S. stock prices lower and corporate credit premia higher.
He argued the Fed's reopening of foreign exchange swap lines with overseas central banks has helped eased pressures in interbank lending and kept credit flowing in the U.S. financial system.
(Reuters) - The euro hovered near a 10-week high against the dollar on Wednesday, supported by strong U.S. corporate earnings that also boosted global shares.
The dollar was on the back foot, slipping against a currency basket and coming under selling pressure versus the yen as Japanese exporters sold the U.S. currency.
The euro moved in narrow ranges as investors awaited testimony from Federal Reserve Chairman Ben Bernanke later in the day and looked for fresh factors to extend the single currency's corrective rally.
"People are less worried about the euro than they were a month or two months ago," said Johan Javeus, head of global strategy at SEB in Stockholm.
He said signs of weakness in the U.S. economy and receding worries about euro zone public finances helped to support the euro in holiday-thinned trade.
"But the market doesn't know which foot to stand on. It's not extreme risk aversion or risk demand," he added.
Bernanke gives his semi-annual testimony on the economy and monetary policy at 1800 GMT. After a run of weak U.S. data, investors waited to see if his statement would boost speculation the Fed may offer more monetary accommodation.
By 0747 GMT (3:47 a.m. EDT), the euro was 0.1 percent higher on the day at $1.2895, having pulled back from $1.3029 hit on Tuesday, its strongest since May 10.
Traders said the euro may struggle to make gains in the near term as investors take profits on a rally which has taken it up more than 8 percent since hitting a 4-year low of $1.1876 in early June.
But there was also talk of bids in the euro at $1.2860/65 and then at $1.2820, with a mixture of stop-loss sell orders and bids then expected around $1.2780/2800.
Analysts said euro movements may be limited before the results of bank stress test are announced on Friday. Some said the results may soothe concerns about how European banks would cope with a deterioration in the region's economy.
YEN GAINS
The euro was also supported by a 1.4 percent rise in European shares .FTEU3, after strong results from Apple (AAPL.O) raised optimism that the second half of the U.S. second-quarter earnings season would be better than expected.
This helped prod the dollar .DXY 0.2 percent lower against a currency basket to 82.575.
The dollar slipped 0.4 percent to 87.14 yen, as Japanese exporters lowered their offers after the currency hit a seven-month trough of 86.27 yen on EBS late last week.
The dollar is struggling as expectations for a Fed rate rise in 2011 fade, while speculation of more easing has risen after weak U.S. data. Figures on Tuesday showed a bigger-than-expected fall in June U.S. housing starts.
The two-year U.S. Treasury note yield hit a record low of 0.57 percent on Tuesday, about 20 basis points less than the yield on two-year German bonds.
Until less than a month ago, U.S. notes yielded more than German debt. Some analysts say the reversal has spurred buying in the euro.
With interest rate differentials playing a key role in currency markets, Bernanke's comments could set the tone of the markets in coming weeks, traders said.
"Bernanke could hint at further monetary policy easing, although the possibility of actually relaxing the Fed's policy is nearly zero," said Hideki Hayashi, global economist at Mizuho Securities in Tokyo.
He added that such an indication may warm risk appetite and boost share prices, while adding it was difficult to predict whether this would add to dollar weakness.
(Additional reporting by Tokyo Forex Team, editing by Nigel Stephenson)
The euro’s gains are close to petering out amid “fragile market confidence,” Royal Bank of Scotland Group Plc said.
The euro’s gains are close to petering out amid “fragile market confidence,” Royal Bank of Scotland Group Plc said. “Confidence will take a hit if European economic growth begins to fade,” Greg Gibbs, a currency strategist in Sydney, wrote today in a report. “It is hard to see confidence in European debt markets improving further from here. Perhaps the stress tests will deliver one more spurt of confidence. But it is close to a peak and so is the euro.”
Trading Tactics
A clear uptrend could be an opportunity to buy EUR/USD.
A buying point is at 1.2987; Pivot point is the take profit at 1.3060; Fibonacci 23.6% is the stop loss at 1.2910
A selling point is at 1.2880; Fibonacci 50% is the take profit at 1.2775; Pivot point is the stop loss at 1.2935
Technical: Euro breaks the previous resistance level upwards and may form a new support level. A move back higher could set up a test of 1.3060
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice histogram MACD is in a bullish direction; RSI (Relative Strength Index) and Momentum are in an uptrend; stochastic oscillator crosses %D line downwards for a small correction.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
EUR-USD There is bearish potential for a fall to 1.2860 - 1.2804 while 1.2916 - 1.2954 resist. After this fall a recovery up to 1.2954 or 1.2992 is expected.
USD-CHF Difficult to predict the next move. If first down it should hold 1.0491 or 1.0469. If first up it should face resistance in 1.0543 - 1.0573 zone to 1.0469 zone.
GBP-USD It may attempt a test higher to 1.5287 - 1.5331 after which weakness may set it to a drift down to 1.5175 limit.
USD-JPY Current rise seems to be over near 87.54 or 87.83 for a retracement towards 87.25 - 87.09 area.
USD-CAD Market should not go lower than 1.0433 - 1.0381. After this move down it should go up to 1.0510 - 1.0537 area.
NZD-USD It should trade higher to 0.7216 while 0.7131 or 0.7108 offers support. Stop loss below 0.7085 zone.
AUD-USD Current rise seems to be over near 0.8843 or 0.8901 for a retracement towards 0.8784 - 0.8753 area.
EUR-JPY Currently uptrend should end around 113.03 - 113.55 area. A correction down to 112.09 - 111.67 is expected. A rise above 114.40 will abort the expected correction.
EUR-CHF No comment!
EUR-GBP Current move should be supported in 0.8435 - 0.8403 zone for a rise to 0.8568. A break below 0.8367 opens the way down.
EUR-CAD Market should not go lower than 1.3439 - 1.3358. After this move down it should go up to 1.3562 - 1.3603 area.
EUR-NZD There is bearish potential for a fall to 1.7822 while 1.8093 - 1.8164 resist. After this fall a recovery up to 1.8164 or 1.8235 is expected.
EUR-AUD Market should not go lower than 1.4567 - 1.4447. After this move down it should go up to 1.4749 - 1.4812 area.
GBP-CHF It should test 1.6198 area after which a sell off down to 1.5962 or extended to 1.5853 area is expected.
GBP-JPY It should trade higher to 134.37 while 132.95 or 132.54 offers support. Stop loss below 132.14 zone.
GBP-CAD Market should not go lower than 1.5926 - 1.5867. After this move down it should go up to 1.6015 - 1.6045 area.
GBP-AUD Market should not go lower than 1.7156. After this move down it should go up to 1.7417 - 1.7472 area.
CAD-JPY Current rise seems to be over near 83.90 or 84.54 for a retracement towards 83.27 - 82.93 area.
NZD-JPY Current rise seems to be over near 62.80 or 63.37 for a retracement towards 62.23 - 61.92 area.
AUD-JPY Current rise seems to be over near 77.41 or 78.16 for a retracement towards 76.65 - 76.25 area.
XAG-USD Market should hold major support at 17.47 before rising towards 17.83 or even 17.96 limit.
XAU-USD It may attempt a test higher to 1192.89 - 1198.60 after which weakness may set it to a drift down to below 1180.60 limit.
The British Pound pared the rally from earlier this week and slipped to a low of 1.5357 during the European trade as investors scaled back their appetite for risk, and the shift in market sentiment may drag the exchange lower
The British Pound pared the rally from earlier this week and slipped to a low of 1.5357 during the European trade as investors scaled back their appetite for risk, and the shift in market sentiment may drag the exchange lower going into the end of the week as investors maintain a cautious outlook for global growth. Former Bank of England board member David Blanchflower said policy makers should be cautious when withdrawing support from the economy as the recovery “is being driven by stimulus,” and went onto say that central bank around the global should wait for clear evidence of private sector growth before normalizing policy during an interview.
Trading Tactics
A clear uptrend could be an opportunity to Buy GBP/USD.
The buying point is at 1.5321; Pivot point is the take profit at 1.5410; Fibonacci 38.2% is the stop loss at 1.5270
The selling point is at 1.5240; Fibonacci 61.8% is the take profit at 1.5150; Pivot point is the stop loss at 1.5340
Technical: Sterling forms a new support level on the previous resistance and may continue the uptrend. A move back higher could set up a test of 1.5410
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator crosses %D line upwards.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
EUR-USD It should be subject to more sell off towards 1.2878 or 1.2814. Corrective upward swings should face resistance around 1.2963 area. A break of 1.3056 is bullish.
USD-CHF Current rise seems to be over near 1.0555 or 1.0591 for a retracement towards 1.0520 - 1.0501 area.
GBP-USD Current fall is near an end of wave around 1.5171 zone, a rally should then procede to above 1.5319. Fall below 1.5113 would cancel this scenario.
USD-JPY Market should not go lower than 86.59 - 86.38. After this move down it should go up to 86.96 - 87.11 area.
USD-CAD One move lower to 1.0505 or 1.0461 is anticipated while below 1.0566 - 1.0588 area. Stop loss above 1.0626 zone.
NZD-USD It may meet resistance in 0.7060 - 0.7068 zone for a drift down to 0.7021 zone, after which bounce to 0.7106 is anticipated.
AUD-USD It should try higher up to 0.8702 - 0.8725. Entry point 0.8679 or 0.8659. After this rise, a correction is expected.
EUR-JPY It is likely to fall towards 111.41 - 110.61 unless a corrective rally breaks the 112.63 resistance. Stop above 113.03 zone.
EUR-CHF Uptrend is still intact in a triangle configuration. It should continue to rally to 1.3684 or 1.3716 if support around 1.3612 hold. After which a pullback to 1.3612 - 1.3582 zone is possible.
EUR-GBP While below 0.8515 - 0.8545 it is more likely to fall further towards 0.8462 or 0.8438. Premature rise above 0.8545 could see it rising above 0.8592 zone.
EUR-CAD One move lower to 1.3591 or 1.3530 is anticipated while below 1.3672 - 1.3702 area. Stop loss above 1.3753 zone.
EUR-NZD One move lower to 1.8185 or 1.8040 is anticipated while below 1.8387 - 1.8459 area. Stop loss above 1.8588 zone.
EUR-AUD One move lower to 1.4824 or 1.4745 is anticipated while below 1.4938 - 1.4977 area. Stop loss above 1.5052 zone.
GBP-CHF It should test 1.6112 area after which a sell off down to 1.6004 or extended to 1.5887 area is expected.
GBP-JPY It may meet resistance in 132.42 - 132.73 zone for a drift down to below 131.40 zone.
GBP-CAD It looks more likely that it would rise to 1.6160 - 1.6255 from 1.6047 or 1.5999. After which a downside move is expected.
GBP-AUD It looks more likely that it would rise to 1.7678 - 1.7821 from 1.7504 or 1.7432. After which a downside move is expected.
CAD-JPY One more dip to 81.97 - 81.63 is likely followed by a grind higher to 82.86.
NZD-JPY It may meet resistance in 61.20 - 61.32 zone for a drift down to 60.79 zone, after which bounce to 61.73 is anticipated.
AUD-JPY It should try higher up to 75.57 - 75.86. Entry point 75.28 or 74.99. After this rise, a correction is expected.
XAG-USD It may meet resistance in 17.59 - 17.67 zone for a drift down to 17.42 zone, after which bounce to 17.85 is anticipated.
XAU-USD It may meet resistance in 1185.25 - 1189.01 zone for a drift down to below 1175.45 zone.
The parity didn't succeed to pursuit its bullish movement into its short term bullish channel, after the break out of 1210. Currently, the price is testing a major support at 1190. All indicators are bearish. We stay neutral between 1190 and 1210. We will wait an exit of this range to enter into the side of the breakout : - Long if 1210 is broken - Short if 1190 is broken ( Stop loss above or below 1210 for both)
The U.S currency dropped to its weakest level in 2010 against the Japanese Yen as signs the U.S. economic recovery is losing momentum supported speculation that the Federal Reserve will keep borrowing costs low for the rest of the year. The USD also declined versus the EUR for the first time since May as a gauge of U.S. consumer confidence dropped more than economists expected and corporate revenue missed analyst forecasts. Economic News
USD - Dollar Weakens on Signs of Economic Slowdown The U.S Dollar fell the most against the EUR in 14 months and dropped to the lowest level this year versus the Yen as economic reports added to evidence that the U.S. recovery is losing momentum.
The greenback touched a level weaker than $1.30 versus the European currency as minutes of the Federal Reserve meeting last month indicated policy makers trimmed their forecasts for growth.
On Friday, a private survey showed U.S. consumer sentiment weakened in early July to an 11-month low and capped a week which saw U.S. data on the softer side, raising questions about the sustainability of the U.S. recovery.
Investors are closely watching the USD/JPY for the possibility of the greenback dropping to a 15-year low by breaching the November 2009 trough of 84.00 yen. Analysts said with U.S. yields heading lower, the Dollar could break past support around its 7 month low of 86.25 yen in the next few days.
EUR - EUR May Erase Gains on Bank Stress Tests The European currency rose for a 3rd straight week against the U.S Dollar ahead of partial results of stress tests on the region's banking system, which are due on July 23. The 16 nation currency has surpassed $1.30 on Friday for the first time since May and traded around $1.2950.
The EUR has rallied 8.9% versus the Dollar since reaching a 4 year low of $1.1877 on June 7 as concern eased that Europe's sovereign-debt crisis would undermine the region's economic recovery.
However, the EUR may reverse its recent advances against the U.S Dollar given the slim likelihood of a very positive surprise from European bank stress tests this Friday, analysts said. European regulators will be examining the strength of 91 banks to determine if they can survive potential losses on sovereign bond holdings. The European currency is unlikely to fall past $1.20 unless there is a major negative surprise given that U.S. economic growth shows signs of slowing down.
JPY - Yen Rises Towards Year's High The Japanese Yen rose toward its strongest level this year against the U.S Dollar as signs the U.S. economy is losing momentum added to speculation that the Federal Reserve will keep interest rates at almost zero this year. The Yen also rose against the Dollar as falling U.S. yields continued to weigh on the U.S. currency, with traders targeting stop-loss orders placed under 87.00 Yen.
Japan's currency gained versus all 16 of its major counterparts and rose toward the strongest level this year. The Japanese currency traded at 87.20 per USD from 87.40 yesterday, after climbing to 87.17, approaching this year's high of 86.97 set on July 1.
Crude Oil - Crude Falls below $76 On Poor U.S. data Crude Oil prices fell below $76 a barrel in early Asian trading Monday, extending the previous session's decline on concern about the U.S. economic outlook after data showed consumer sentiment fell to a near one-year low.
However, analysts said marginal slide in Oil prices shows that Crude was receiving ample support at above $74 a barrel, thanks to bullish inventory reports that showed large draw downs in U.S. Crude stockpiles over the past three weeks. Technical News EUR/USD Following the prolonged upward movement the pair has experienced recently, it appears a bearish correction may be imminent. The Relative Strength Index on the 8-hour chart is currently in overbought territory, as is the Stochastic Slow on the daily chart. Traders are advised to go short with tight stops today. GBP/USD
Mixed technical signals indicate that no clear direction for this pair is presenting itself at this time. While the Stochastic Slow on the 4-hour chart indicates the pair may experience upward movement later today, the Relative Strength Index on the 8-hour chart shows the opposite. Traders may want to take a wait and see approach for this pair today.
USD/JPY Most technical indicators are showing this pair trading in oversold territory, indicating that an upward correction will likely occur today. The Stochastic Slow on the daily chart shows a bearish cross forming, and the Relative Strength Index on the 8-hour chart supports the theory that upward movement is forthcoming. Going long may be the preferred strategy today.
USD/CHF Practically all technical indicators show the pair currently trading in neutral territory, with no clear direction at this time. These include the Stochastic Slow and Relative Strength Index on the 8-hour and daily charts. Traders are advised to take a wait and see approach for this pair today.
The Wild Card Hang Seng Index The Slow Stochastic on the 8-hour chart shows a bearish cross forming, indicating that upward movement could occur in the near future. The Relative Strength Index on the 4-hour chart supports this theory. CFD traders are advised to go long with tight stops today.
