Archive For "September, 2010"

NEW YORK (MarketWatch) — The Federal Reserve Bank of New York purchased $2.2 billion in Treasury bonds on Thursday, part of officials’ pledge to reinvest cash from maturing mortgage-backed securities and housing agency debt back into the bond market to support the economic recovery. Dealers offered to sell the Fed $11.499 billion in debt maturing from 2021 to 2040. Analysts expected the Fed to buy about $2 billion during this operation. After the results, the broader bond market remained down, pushing yields up. Yields on 10-year notes rose 3 basis point to 2.54%.

NEW YORK (MarketWatch) — The U.S. dollar turned up against the euro and Treasury prices stayed lower on Thursday after a gauge of manufacturing activity in the Chicago area improved in September. Yields on 10-year notes , which move inversely to prices, rose 8 basis points to 2.58%. The dollar index , a measure of the greenback against a basket of six major currencies, pared losses to trade at 78.722, down from 78.768 late Wednesday. The euro [c: cur_eurusd] bought $1.3624, turning down from $1.3632 in late North American trading Wednesday.

TOKYO (MarketWatch) — Japan’s Ministry of Finance said Thursday that it sold 2.125 trillion yen ($25.5 billion) when it intervened directly in foreign exchange markets in September, according to reports. It didn’t release any details of when the intervention took place, but Finance Minister Yoshihiko Noda confirmed earlier this month that the Bank of Japan bought dollars for yen on Sept. 15, after the greenback fell to a 15-year low of 82.87 yen.

NEW YORK (MarketWatch) — Treasury prices pared their gains and the U.S. dollar recovered against the euro after the Labor Department said jobless claims fell 16,000 to 453,000 in the latest week. A separate report gave the final revision on second-quarter GDP, showing the economy grew at a 1.7% pace. Yields on 10-year notes , which move inversely to prices, fell 2 basis points to 2.48%. The dollar index , a measure of the greenback against a basket of six major currencies, traded at 78.549, compared with 78.501 before the data but down from 78.768 late Wednesday. The euro [c: cur_eurusd] bought $1.3656, versus $1.3670 earlier and up from $1.3632 in late North American trading Wednesday. Still to come is a manufacturing report for the Chicago region and the Federal Reserve’s buyback of long-term Treasurys.

LONDON (MarketWatch) — Consumer price inflation in the 16-nation euro zone accelerated to an annual rate of 1.8% in September, up from 1.6% in August, the European Union statistics agency Eurostat said in a preliminary estimate released Thursday. The figure was in line with forecasts.

LONDON (MarketWatch) — British house prices rose 0.1% in September and were 3.1% higher than in the same month last year, mortgage lender Nationwide reported Thursday. House prices fell 0.8% in August, leaving them up 3.9% on a year-on-year basis. The three-month-on-three-month rate of change fell from 0% in August to 0.9% in September, the first negative reading since May 2009, Nationwide said. Earlier, research firm GfK NOP said its U.K. consumer confidence index, conducted on behalf of the European Commission, fell by two points in September to -20. The index rose four points in August to -18.

LONDON (MarketWatch) — The number of German unemployed fell by a seasonally-adjusted 40,000 in September, the country’s Federal Labor Office reported Thursday. Economists had forecast a decline of 20,000. The seasonally-adjusted unemployment rate fell to 7.5%. Economists had expected the rate to remain unchanged at 7.6%.

Daily Outlook: Morning/Evening/Afternoon PipHutters :). If nothing else this recent uptrend has been consistent which is great news for us as we have been looking for buying opportunities for weeks now and the charts have not let us down yet.

As you can see in the chart below the pair continues to accelerate upward and, as I said yesterday, overbought or not all signals point north so I will continue to look for technical buying opportunities on dips and breakouts. Yesterday I settled for the latter (breakout) which netted some quick pips but not nearly enough to write home about. Candlesticks in general were very, very accurate yesterday as shooting stars, hanging men and dojis preceded a very high % of turns in the pair on all timeframes.

Profitable Uptrend

Plenty of news on the forex calendar today, including US GDP and Jobs data just to name a couple so stay sharp around those time periods.

As always CandlePro users can check multiple pairs/timeframes for intraday candlestick signals and you should watch out for news events on the forex calendar.

Trading Idea: Primary trade is conservative as the main risk to today’s trade is just trend exhaustion – at some point this trend will catch a bit of its breath, it is just a matter of when. IF we do see a retracement I will look in the vicinity of 1.3500 for a long with targets at 1.3525, 1.3555, 1.3585 and 1.3615 for 115 pips.

Secondary trade will be more aggressive with good confirmation at 1.3560 support, with targets at 1.3580, 1.3605, 1.3635 and 1.3665 for 105 pips.

A very aggressive trade would be a short on a sustained break below 1.3550 with targets down to 1.3500 and 1.3420 (if you believe pair is rolling over).

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WASHINGTON (MarketWatch) — The Federal Reserve must continue to respond “vigorously, creatively, thoughtfully and persistently” to the slow recovery, said Eric Rosengren, the president of the Boston Federal Reserve Bank, on Wednesday. Rosengren said the U.S. faces a serious economic problem with growth too slow to either bring down the unemployment rate or to stem disinflationary trends. In a speech to the Forecasters Club of New York, Rosengren urged fellow policymakers to be open to another round of quantitative easing. The goal of a second round of Treasury purchases would be to “stimulate the economy by reducing long-term interest rates to a level that is more consistent with where they would be if the Fed was able to cut the federal funds rate further,” he said. He said buying Treasurys would also push down long-term rates on other long-term securities.

WASHINGTON (MarketWatch) — Charles Plosser, the president of the Philadelphia Federal Reserve Bank, said Wednesday that he opposes a second round of Treasury purchases of any size by the central bank. “Monetary policy is not a magic elixir that can solve every economic ill,” Plosser said in a speech in Vineland, N.J. He said he doubted that more quantitative easing would impact the near-term outlook for employment and the Fed might lose credibility if it promised such a result. Plosser dismissed what he called “media alarm” about “summer doldrums,” saying a modest economic recovery was underway and would continue. Plosser said inflation would remain subdued but did not see a big risk of sustained deflation. Plosser becomes a voting member of the Federal Open Market Committee in 2011.