Peter Bain Forex Trading Commentary for Friday March 3, 2006
Forexmentor.com Currency Trading Price Action
According to trendline analysis, the trend on the daily chart for both the euro and the pound is up. That's good for position traders. From a day trading perspective, the one constant remains trading the news. Two of our members have documented systems to trade the news - MMTS and KTTN. More often than not, they have proven effective in catching the aftermath of news coming out at 8:30 am ET. This is something you may wish to specialize in. The other thing you may wish to focus on are the opening and closing times for the various markets - watching for swing trades. Today's price action for the two pairs was rather anemic at the London open - the euro just meandering sideways, and the pound getting some oomph well after the London open. It really does pay to study both currencies, as you will catch movement on one that you won't on the other, albeit they usually move in tandem. But, the subtle differences in their behavior are worth being aware of.
See today's chart at: http://www.forexmentor.com/campaign/mar0306.html
See sample AM Reivew at: http://www.forexmentor.com/sampler/feb2306.html
Forexmentor.com Forex Trading News
The Canadian dollar has been so strong that there has been interest across the board in buying it on the crosses. Not only has the loonie surged against the U.S. dollar, but It has also gone up against the sterling, the euro, the yen and the Swiss franc - not to mention achieving 14-year highs.
We are getting conflicting signals about the health of the U.S. economy. Yesterday, I reported "Recent U.S. regional data, weaker than expected, indicates a weakening U.S. economy, and raises questions about corporate profits and economic growth. That data included existing home sales, consumer confidence, and Midwest business conditions." Today, however, the bouncing ball continues to bounce, with the release of strong data from that economy. The U.S. Institute for Supply Management's monthly index on manufacturing activity beat analysts' forecasts and, get this, the U.S. Office of Federal Housing Enterprise Oversight reported that U.S. house prices rose 12.95% from the fourth quarter of 2004 through the fourth quarter of 2005.
Oil prices remain strong, given the concerns about interrupted exports from OPEC counties, including Iran and Nigeria, and U.S. refineries shutting down units for maintenance (which will escalate in the weeks ahead). Such closures necessitate withdrawals from stockpiles, thereby whittling away at the high inventory levels.
According to trendline analysis, the trend on the daily chart for both the euro and the pound is up. That's good for position traders. From a day trading perspective, the one constant remains trading the news. Two of our members have documented systems to trade the news - MMTS and KTTN. More often than not, they have proven effective in catching the aftermath of news coming out at 8:30 am ET. This is something you may wish to specialize in. The other thing you may wish to focus on are the opening and closing times for the various markets - watching for swing trades. Today's price action for the two pairs was rather anemic at the London open - the euro just meandering sideways, and the pound getting some oomph well after the London open. It really does pay to study both currencies, as you will catch movement on one that you won't on the other, albeit they usually move in tandem. But, the subtle differences in their behavior are worth being aware of.
See today's chart at: http://www.forexmentor.com/campaign/mar0306.html
See sample AM Reivew at: http://www.forexmentor.com/sampler/feb2306.html
Forexmentor.com Forex Trading News
The Canadian dollar has been so strong that there has been interest across the board in buying it on the crosses. Not only has the loonie surged against the U.S. dollar, but It has also gone up against the sterling, the euro, the yen and the Swiss franc - not to mention achieving 14-year highs.
We are getting conflicting signals about the health of the U.S. economy. Yesterday, I reported "Recent U.S. regional data, weaker than expected, indicates a weakening U.S. economy, and raises questions about corporate profits and economic growth. That data included existing home sales, consumer confidence, and Midwest business conditions." Today, however, the bouncing ball continues to bounce, with the release of strong data from that economy. The U.S. Institute for Supply Management's monthly index on manufacturing activity beat analysts' forecasts and, get this, the U.S. Office of Federal Housing Enterprise Oversight reported that U.S. house prices rose 12.95% from the fourth quarter of 2004 through the fourth quarter of 2005.
Oil prices remain strong, given the concerns about interrupted exports from OPEC counties, including Iran and Nigeria, and U.S. refineries shutting down units for maintenance (which will escalate in the weeks ahead). Such closures necessitate withdrawals from stockpiles, thereby whittling away at the high inventory levels.
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