Indicators Are Showing Sell

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States * A mixed week in equity markets as analysts parse through earnings reports. U.S. bond yields push up slightly on positive economic data. * Housing demand showing signs of life with existing home sales up 12.3% and month's supply falling to its lowest level since March 2010. * But, with shadow inventories still looming, housing starts fall to their lowest level in over a year at 529,000. * Clearing distressed properties will be key to pulling the housing market out of its prolonged stump. With rising demand, that could well happen in 2011, setting the stage for a robust recovery in 2012 and beyond. Canada * Bank of Canada holds overnight rate steady at 1.00%. * Bank cites the impact of an elevated ...

The US dollar saw gains across the board in overnight trading. Analysts attribute the bullish greenback to a positive US Building Permits figure released yesterday, which subsequently made the dollar more attractive to investors. Today, a batch of US data is predicted to show growth in both employment and home sales. It is possible a positive reading could extend the USD's gains, but a rise in risk appetite could also cause the opposite. Traders should be on the lookout today for any swings. Economic News USD - Bullish USD Predicted to Extend Gains Today The US dollar moved up against virtually all of its main currency rivals yesterday, following the release of a positive US Building Permits figure. Immediately after its release the GBP/USD began to tumble and has yet to stop. ...

The publication of the Non-Farm Payroll (NFP) data from the US at 13:30 GMT today is without a doubt the leading publication on the economic calendar. If this highly impactful employment report comes in line with Wednesday's ADP figures, the USD could continue its current bullish run through the middle of next week. Economic News USD - Will December Non-Farm Payrolls Boost the USD? The US dollar continued its bullish surge yesterday following up from Wednesday's leap. Automatic Data Processing Inc. (ADP) published their monthly report on private sector employment change throughout the month of December showing a better-than-forecast growth in the American employment sector. The result was a strong upward movement in the greenback. The EUR/USD dropped from 1.3433 to below 1.3000 for ...

(Reuters) - The manufacturing sector grew for a 17th straight month in December, adding to recent evidence that a recovery in the economy was picking up steam, according to an industry report released on Monday. U.S. construction spending rose more than expected in November to touch its highest level in five months, a government report showed, a further sign that the economic recovery was gaining momentum. KEY POINTS: * The Institute for Supply Management said its index of national factory activity rose to 57.0 last month from 56.6 in November. * That was in line with the 57.0 median forecast of the 57 economists surveyed by Reuters. * A reading above 50 indicates expansion in the sector. * The Commerce Department said construction spending increased 0.4 percent to an annual rate of $810. ...

Good day… We had another fairly quiet day in the markets on Tuesday, and it looks like most of the currency desks have already been placed on autopilot. Every year we get a lull in trading activity toward the end of the year, as most of the currency investors square up positions and don’t take large bets at the end of the year. Many of the desks are manned by junior staff while the big bosses head out for their holiday vacations (EverBank WorldMarkets included). But for the first time this week, we will have a pretty good bunch of data releases here in the US, so we could see a bit more action in the markets. With thinner trading volumes, a rogue piece of economic data can have a major impact on the markets. The morning began with a report that showed mortgage applications in the US fell ...

The euro traded near a two-week low against the dollar on speculation some European nations and banks will struggle to raise funds amid the region's debt crisis. The euro also fell to a series of fresh all-time lows against the Swiss franc, with the Swiss currency, along with the U.S. dollar and Japanese yen, benefiting from their roles as perceived safe harbors in times of trouble. Economic News USD - Dollar Gains on Renewed Euro Zone Concerns The U.S. Dollar continued to strengthen against the EUR on Monday, as investors remain fearful that more euro zone nations will finally acknowledge the difficulties they're having working within their fiscal budgets. By yesterday's close, the USD rose against the EUR, pushing the oft- traded currency pair to near the 1.31 level. Irish debt was ...

(Reuters) - The euro ticked up on Friday, showing some resilience after bouncing off trading-range support, while the dollar paused after oversold U.S. Treasuries gained a bit of ground, taking the benchmark yield off this week's highs. The dollar's failure to push through the top of this month's trading ranges against the euro and yen has left the market in consolidation mode as operations wind down for the year-end, although many in the market doubt the euro's troubles are over. The euro has tested support in the $1.3165-80 band several times in the past week while the dollar has repeatedly failed to break cleanly above 84.50 yen since late November, in spite of higher yields on the back of improving economic data. Indicators on Thursday showed new U.S. claims for jobless aid fell ...

The euro continues to capitalize on the news that the EU may create a mechanism in order to prevent any future debt crises like the ones recently seen in Greece and Ireland. Since last night, the EUR/USD has gone up 60 pips and is currently trading around the 1.3270 level. Whether or not the bullish trend will continue remains to be seen, but traders will want to pay careful attention to the EU Economic Summit for clues as to any new policies within the euro zone. Economic News USD - Dollar Tumbles Despite Positive US News The US dollar took some fairly substantial losses in overnight trading, despite positive news out of the US yesterday. In addition to the EUR/USD moving up, the greenback has taken a hit against both the Japanese yen and UK pound. Since reaching a peak at 84.43 ...

(Reuters) - Europe's sovereign debt crisis will still hang over global markets next week, but on Wall Street, investors will not be afraid to bet on stocks. Wall Street has shown its ability to hold onto gains, or quickly recover from losses this week despite Europe's debt woes, suggesting that investors are confident of a sustained rally. "When things don't fall apart on bad news, you know that the market is no longer vulnerable. The overall sentiment is pretty solid," said Randy Frederick, director of trading and derivatives at Schwab Center for Financial Research in Austin, Texas. The outstanding put-to-call ratio on index options, heavily focused on the S&P 500 benchmark, dropped from 1.32 last week to 1.29, showing bullish signs for next week. The ratio, which is always greater ...