FXstreet.com (Córdoba) - After rising toward a 2-day high of 80.92 on risk appetite following the NFP report, USD/JPY has retraced part of the initial spike and is consolidating around 80.50.

According to Valeria Bednarik, chief analyst at FXstreet.com, "Despite recent spike, 4 hours chart shows price still contained below a bearish 20 SMA yet indicators had erased past days bearish tone and are now aiming higher, helping keep the downside limited. A recovery, as long as above 80.00 should then be expected for this end of the week."

With USD/JPY currently at 80.55, Bednarik sees next support levels at 80.40, 80.10 and 79.80, while she locates next resistance levels at 80.90, 81.15 and then 81.40.

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FXstreet.com (Córdoba) – The EUR/USD suffered one of the worst 2-day loss in history. The pair traded at 1.4900 on Thursday and finished the week around 1.4350. The decline started with Trichet words singling that the ECB is not going to raise rate in the next meeting and on Friday, rumors about Greece leaving the Eurozone accelerated the decline.

The pair bottomed in the last day of the week at 1.4313, 620 pips below weekly highs reached on Wednesday at 1.4933 when it traded at the highest level in 17 months. The Euro was the worst performer during the week among majors.

In the Eurozone, Greece denied that it is considering leavening the euro. There were also speculations about a debt restructuration. “Pending the substantiation of this speculation, the euro will remain under pressure; but it will also hold off from a major run”, said Senior Currency Strategist from Daily FX, John Kicklighter.

A confirmation that Greece intends to leave, would send the euro sharply lower according to the Daily FX analyst. “Alternatively, putting to rest this speculation could lead to a temporary bounce that unwinds this morning’s losses. However, that doesn’t mean that it will recover any more ground than that; as traders now realize that the market is highly sensitive to concerns over the region’s financial stability”, Mr. Kicklighter added.

“The euro sell-off could continue on further position unwinding – especially if the correction in commodity prices runs further – and even lower levels in EUR/USD in the short term cannot be ruled”, analyst at the Danske Bank wrote in a report before the Greece news hit the wires. They concluded that in the short term the pair could continue to go lower if the indications that the global economy is slowing down spreads to equity markets, but they still see the underlying trend for a higher EUR/USD. “Hence, on the back of ECB hikes and easy monetary policy in the US, we will look for attractive levels to reposition for renewed upside”.

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FXstreet.com (Córdoba) – The EUR/USD peaked earlier at 1.4540/47, the highest price since January 14, 2010 but lost bullish momentum, moved in ranges for some hour and currently is testing levels below 1.4500. The pair is retreating after rising 200 pips from today’s opening price, extending to almost 400 pips the distance from Monday’s low.

The EUR/USD hit recently at 1.4987 the lowest price since early European session and remains hovering barely below the 1.4500 level.

Fan Yang, Chief Technical Strategist at FXTimes points out that the pair “is likely returning to its bullish mode”. “A swing projection seen in the daily chart is suggested by a positive reversal signal where the RSI low is lower, but the price low is higher”, Yang says. He affirms that the swing projection targets 1.4675, “this is the short-term target at the moment”.

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By: Tom Jennemann

New York 20/04/2011 - Comex gold was steady above $1,500 on Wednesday morning on a weaker dollar and governmental debt worries.

But prices have eased slightly from the morning's high following a flood of positive earnings reports and stronger equity markets.

Gold futures on the Comex division of the New York Mercantile Exchange for June delivery were recently trading up $9 at $1,504.10 per ounce in New York and earlier in the session reached an all-time record of $1,506.20.

"The impetus for the run-up early this morning was clearly the softer dollar, which is getting hammered and fell to its lowest level in the past 15 months [against the euro],” a US-based fund manager said. “When the dollar takes a beating like this, metals are going to rally."

The euro rose 1.4 percent to 1.4543 against the dollar this morning largely on increased risk appetite and after a successful bond auction in Spain.

But the yellow metal has edged down marginally from its intraday high since the open of equity markets in New York.

"We've seen some quite positive earning reports from the likes of Intel and Freeport-McMoRan, which had the Dow up by over 175 points," the fund manager said.

“Despite all the dire headlines of late, Wall Street doesn't think the economy is hanging off the cliff,” he added. “Some folks are looking at riskier assets this morning as the stock bulls have returned.”

Standard Bank echoed this sentiment in a note. "Fears that the global economic recovery might be in jeopardy, sparked by Standard & Poor's ratings outlook downgrade of the US, have been dispelled by strong corporate earnings results and a steady improvement in US housing data," analyst Marc Ground wrote.

Existing US home sales rose 3.7 percent in March to an annualised rate of 5.1 million units, slightly ahead of expectations, the National Association of Realtors said on Wednesday morning.

Nevertheless, many investors continue to express concerns about the burgeoning debt crisis in the US and Europe and inflation around the world.

Bolstering this argument was S&P's surprise outlook downgrade of US long-term debt to "negative" to "stable".

"This latest chapter in the saga of sovereign debt concerns highlights gold's benefits as a risk-hedge and currency diversifier. It also presents new challenges for investors who traditionally, in times of uncertainty, steer capital towards US Treasuries," Marcus Grubb, managing director of the Investment at the World Gold Council, said in a statement.

Additionally, the US government does not have a credible plan to cut the deficit, International Monetary Fund chief economist Olivier Blanchard said on Wednesday according to French paper Le Monde.

Comex silver for May delivery also soared on Wednesday - it was recently trading up about one dollar at $44.90 per ounce, which is a 31-year high. The closely watched gold-silver ratio has dropped to 33.5 - a 28-year low.


(Editing by Mark Shaw)

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FXstreet.com (Córdoba) – The Swiss Franc continues its rally against the Dollar. The USD/CHF fell further below 0.8900 and reached a new all time low at 0.8878. The pair remains trading near session low, holding a bearish bias. Greenback is headed toward the tenth daily decline out of the last 12 trading days.

The recovery of the Dollar earlier found resistance at 0.8930 and the pair resumed its downtrend as the Swissy strengthened across the board.

To the downside, support levels could be located at 0.8860 and below at 0.8820 while to the upside, probable resistance levels lie at 0.8890 and above at 0.8930 and 0.8965.

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FXstreet.com (Córdoba) – Stocks rose sharply in Wall Street with the Dow Jones ending at the highest level since June 2008. Gold reached fresh record highs above $1,500 an ounce as the Dollar posted losses across the board.

The DOW rose 1.52% on Wednesday and has risen more than 300 point in three days. Earnings reports and better-than-expected housing data triggered optimism in Wall Street.

In the currency market, the Aussie and the Swiss Franc were among the best performers. The Yen trimmed losses on American hours but finished mostly lower in the market.

The EUR/USD reached fresh 15-month highs at 1.4545, pulled back afterwards to 1.4485 but managed to rise back above 1.4500. Cable remained steady on American hours consolidating around 1.6400, barely below April highs.

The USD/CHF extended its decline to fresh record lows at 0.8870/80 and remains under pressure. Greenback is also trading at record lows against the Aussie.

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By: Jamie Coleman

Hopes for robust US growth have been dialed back further in the wake of the US trade data which has pressured US yields lower. The buck, which suffers from many woes, seems to latch on to the latest one to float across the screens, and yields are today's problem du jour for USD bears to hang their hats on... 10s are down 10 bp in yield with 5 over 12 bp lower.

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FXstreet.com (Buenos Aires) – USD/CHF remains steady around 0.8960, near daily low set at 0.8942 just around US opening. The pair has been falling straight for 5 days already, accumulating over 400 pips to the downside this month. All time low, set on March 16th following Japan’s earthquake, lies at 0.8860.

The pair, that seems extremely oversold according to Valeria Bednarik, Fxstreet.com chief analyst, holds its “bearish momentum intact both in 1 and 4 hours charts, and despite extreme oversold readings are clear in both, pair seems not ready for a bullish corrective movement. Lose of 0.8940 daily low, should accelerate the slide towards mentioned record low”.

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FXstreet.com (Córdoba) – Despite moving away from session lows against commodity currencies, Cable reached fresh lows against its European rivals and the Yen while GBP/USD failed to hold above 1.6300 and fell below 1.6270, approaching daily lows.

The Pound weakened earlier across the board following inflation data in the UK and after pulling back, started to fell once again as stocks in the US decline, with the Dow Jones reaching weekly lows.

The EUR/GBP broke above 0.8900 for the first time since October of last year and is approaching to 0.8940; if it rises further it would be trading at the highest level in a year.

Against the Swiss Franc and the Yen, the Pound is currently at daily lows. GBP/CHF has fallen more than 300 pips since the beginning of the week and at the moment trades below 1.4550 while GBP/JPY is back below 136.00, looking for a new low.

The Pound only managed to hold against AUD, CAD and NZD; the three currencies weakened considerably in the last hours amid a decline in commodity prices and risk aversion.

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DailyFX provides forex news on the economic reports and political events that influence the currency market.

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Overnight Headlines

• US Dollar Gains vs Euro, Pound on Safety Demand as Stocks Decline
• New Zealand Dollar Outperforms on Rising Payouts for Dairy Farmers
• UK House Prices Surge in February, Overall Trend Still Disappointing

Critical Levels

CCY	SUPPORT	RESISTANCE
EURUSD	1.3574	1.3745
GBPUSD	1.6165	1.6328

The Euro and the British Pound declined, falling as much as 0.3 and 0.2 percent respectively against the US Dollar as stocks sold off in overnight trade, boosting safety-seeking demand for the benchmark currency. We remain short EURUSD.

Asia Session: What Happened

CCY	GMT	EVENT	ACT	EXP	PREV
JPY	15:00	Cabinet Office Monthly Economic Report	-	-	-
NZD	21:30	Performance Services Index (JAN)	50.8	-	52.1 (R-)
GBP	0:01	Rightmove House Prices (MoM) (FEB)	3.1%	-	0.3%
GBP	0:01	Rightmove House Prices (YoY) (FEB)	0.3%	-	0.4%
NZD	2:00	Credit Card Spending (MoM) (JAN)	3.8%	-	-1.7% (R-)
NZD	2:00	Credit Card Spending (YoY) (JAN)	5.6%	-	2.1% (R+)
JPY	4:30	All Industry Activity Index (MoM) (DEC)	-0.2%	-	-0.2% (R-)

The New Zealand Dollar outperformed in overnight trade, overlooking mixed economic data and a selloff across Asian stock exchanges, amid speculation that Fonterra Cooperative Group Ltd – the world’s largest dairy exporter – may raise its payout to farmers after milk powder prices hit a 31-month high. Higher payouts promise to boost hiring and spending in New Zealand’s top export industry, adding fuel to the sluggish economic recovery. The currency rose 0.5 percent on average against its major counterparts.

The New ZealandPerformance of Services Index slid to 50.8 in January, showing the non-manufacturing sector expanded at the slowest pace in 15 months. Meanwhile, Credit Card Spending soared 5.6 percent from the preceding year, showing the fastest annual growth rate since May 2008. The MSCI Asia Pacific regional benchmark index fell as downward pressure from last week’s Chinese RRR increase was compounded by spreading tensions in the Middle East, with uprisings spreading to Libya, Bahrain and Iran.

UK House Prices surged in February, rising 3.1 percent from the previous month according to report from Righmove Plc, an online listing of for-sale properties. The increase is the largest in four months. Looking past month-to-month volatility however, the trend in house prices remains troubling. Indeed, the same report showed prices added just 0.3 percent from a year before, putting the annualized growth rate at the slowest in 16 months.

Euro Session: What to Expect

CCY	GMT	EVENT	EXP	PREV	IMPACT
CHF	8:00	Money Supply M3 (YoY) (JAN)	-	6.6%	Low
EUR	8:00	French PMI Manufacturing (FEB P)	55.3	54.9	Low
EUR	8:00	French PMI Services (FEB P)	58.0	57.8	Low
EUR	8:30	German PMI Manufacturing (FEB A)	60.3	60.5	Medium
EUR	8:30	German PMI Services (FEB A)	60.2	60.3	Medium
EUR	9:00	German IFO - Business Climate (FEB)	110.3	110.3	Medium
EUR	9:00	German IFO - Current Assessment (FEB)	113	112.8	Medium
EUR	9:00	German IFO – Expectations (FEB)	107.5	107.8	Medium
EUR	9:00	Euro-Zone PMI Composite (FEB A)	56.9	57.0	Medium
EUR	9:00	Euro-Zone PMI Manufacturing (FEB A)	57.2	57.3	Medium
EUR	9:00	Euro-Zone PMI Services (FEB A)	55.9	55.9	Medium

Risk sentiment is likely to remain a key catalyst for currency markets in European hours as investors continue to fret about mounting tensions sweeping the Middle East and North Africa. Stock index futures ticked lower and stocks sold off in Asia after Saif al-Islam Qaddafi, the son of Libyan leader Muammar Qaddafi, spoke out on state-run television warning of an impending civil war as Tunisian- and Egyptian-style protests were met with a harsh response from security forces. Libya is the world’s 12th-largest oil exporter.

On the data front, Germany’s IFO Survey of business confidence is expected to show sentiment soured a bit, with the closely-watched “Expectations” index down to 107.5 in February having hit a record-high 107.8 in the previous month. Meanwhile, February’s preliminary Euro Zone Purchasing Manager Index figures are set to reveal region-wide economic activity decelerated for the first time since October, driven by a slowdown in manufacturing-sector growth.

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Forex - Survey: Sales of Distressed Homes increased in January
By: Calculated Risk on February 22 11 8:22 EST
From Campbell/Inside Mortgage Finance HousingPulse: HousingPulse Distressed Property Index Hits 49.6% in January

Perhaps the biggest news in the January data was a sharp rise in the HousingPulse Distressed Property Index or DPI, a key indicator of the health of the housing market. The DPI, or share of total transactions involving distressed properties, climbed from 47.2% in December to 49.6% in January. The increase was a continuation of a trend as the DPI registered just 44.5% back in November.
...
Already, in the key state of California, distressed property transactions account for 66% of the market. In Florida, distressed property transactions account for 63% of the market. And in the combined area of Arizona and Nevada, distressed property transactions are a stunning 72% of home sales.
...
The increase in distressed properties, combined with a reduction in first-time homebuyers, is causing downward pricing pressure to build in the market, especially for the categories of damaged REO and move-in ready REO.

This fits with other recent reports suggesting the percent of distressed sales was very high in January. The Case-Shiller house price data, to be released this morning, will be for last year (October, November and December) - and this survey suggests the repeat transaction house price indexes will show further weakness in 2011.

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Why Metatrader is the best way to trade Forex?

Many Forex traders that enter the market are clueless on how to trade. Most, if not all Forex brokers offer demo practice accounts to get you adjusted to their platform. The great thing is a lot of them are Metatrader brokers. This means their core platform comes from a company called Metaquotes. These brokers more or less lease the software and allow the traders to build their trading strategies.

The most powerful thing you can do with this software is create your own trading strategies and program them into an Expert Advisor or EA for short. These EA’s are state of the art and allow you to auto trade the strategies. Auto trading is a phenomenal thing, in that you don’t have to be at your computer for trades to open and close. The stability of the platform is fantastic and the only thing that may carry some worry when you are not present is your Internet connection.

The top 10 reasons why you should use the Metatrader ( MT4) platform:

The Metatrader platform is versatile and very stable.
There are plenty of Metatrader brokers to choose from.
You can find metatrader expert advisor programmers to create your strategies into EAs if you can’t do it yourself.
If you look hard enough you can find free meta trader EA’s.
The software is free to demo with for as long as you want.
You can create your own Forex Trading Robot.
You can create as many Trading templates as you wish.
You can manually back test all the strategies you plug into the system.
The charts are very clean and very easy to read.
The reporting gives you full statements and information without logging into a broker website.

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