Todays Trading Signals

As predicted in yesterdays snapshot, risks fell from their highs, stocks in the US just not managing to hold ground as US consumer confidence fell below 50 for June.  Oil also coming off its highs yesterday assisting the greenbacks strength, albeit are up at time of writing.  European stocks also up across the board along with US equity futures which if hold into the US session could see a retracement for the risk trades.  Comments from FEDs Janet Yellen yesterday indicating that the interest rate should stay near zero for years to come may indicate a long term view of dollar weakness.  The prediction for the Dow in Q£ is still 9000, and even 10000 by the end of the year where it is said that the recession will be nearly over.  Oils medium term view is still $75/80 per barrel only assisting in the dollars weakness.

Matt James
MJ@advancedcurrencyfx.com

For today however and the cable trade, awaiting the ADP report later today, which if in line with expectation should see a boost to the stocks thus lifting the cable back up to the 1.6550 level this afternoon.  Currently trading at 1.6430/35 having reached a high of 1.6480 and a low of 1.6385.  Euro/Sterling still heading north having reached a high of 85.75, now trading at 85.60.  Should we get another day of selling from the US stockmarket this afternoon and we break and hold 1.6380, expect a move back down towards 1.63 ahead of 1.6280.

Eurodollar trading today being lifted from the cross with the Yen and the pound along with better than expected PMI figures and retail figures from Germany.  Should we break and hold 1.4080 expect a move back up towards the highs of yesterday.  Should stocks fall again today along with oil, and we break the 1.40 level, then expect a retracement back towards the 1.3950/60 level.