The Euro extends decline as consumer confidence in the Euro area falls in July

The Takeaway: [Euro zone consumer confidence drops] > [could signal further economic recession] > [EURUSD down]
The confidence of consumers in the 17-nation eurozone fell slightly in June in the uncertainty in the head, to June 17 elections Greek and Spanish banking bailout of the sector. The Brussels-based European Commission, reported today that the indicator of consumer confidence flash in the block of the single currency fell slightly to-19.6 in June, after rising last month at-19.3. The consensus forecast 28 economists surveyed by Bloomberg News had requested a decrease of - 20.0.
With more contraction in the manufacturing and services sectors, the decline in the perception of household could report that the economic stagnation in the euro zone deepened in the current quarter.
Chart 1-minute EURUSD: 21 June 2012
Graph created with the scope of the market - prepared by Chen Wen - Tzu
The euro extended its fall against the greenback, as declining among consumers adds to an increased risk of contracting spending households and signals of slowdown of growth in the euro zone. At the time of this report, the EURUSD pair has less than US $ 1.2600 commercial.

$- US Dollar Extends Advance Despite S&P 500 Resistance Break

25 May 2012 01: 48 GMT THE TAKEAWAY: US Dollar continued to press higher despite an upside break from the S & P 500 but highly technical studies warn that a pullback may be nearing overbought.
S & P 500 - Prices broke through resistance at 1322.10, the 23.6% Fibonacci tracing, after completing a Bullish Engulfing candlestick pattern above support at 1292.90. The bulls now aim to challenge the 38.2% Fib at 1341.70. The 1322.10 level has been recast as near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL - Prices put in a Harami candlestick pattern above resistance-turned-support at 90.49, hinting a corrective bounce may be ahead. Positive RSI divergence reinforces the case for an upside scenario. Initial resistance lines up at 92.51, form support marked by the December 16 low, with a push above that targeting the February 2 low at 95.41.

Daily Chart - Created Using FXCM Marketscope 2.0
GOLD - Prices narrowly slipped below support at 1560.98, the 23.6% Fibonacci tracing, exposing the next key downside barrier in the 50 1522-1532 45 region. The lack of meaningful belief on the break lower puts follow-through into question however, suggesting the 38.2% Fib at 1582.10 may still be the most significant near-term resistance threshold.

Daily Chart - Created Using FXCM Marketscope 2.0
US DOLLAR - Prices continued to edge higher after taking out resistance in the 10134-41 area marked by the 76.4% Fibonacci expansion and the October 2011 swing high. The bulls the 100% target level at 10241 as the major next upside objective from here. RSI studies are at their most overbought since prices set the last major top however, warning that the threat of a pullback is significant. The 10134-41 region has been recast as near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0

$ U.S. Dollar Extends Gain after April New Home Sales Exceed Forecast

23 May 2012 15:12 GMT THE TAKEAWAY: U.S New Home Sales Rose 3.3 Percent in April> Recovery in Housing Market Helps Boost Economic Growth > U.S. Dollar Extends Gain
Purchases of new single-family houses in the U.S. bounced back more than forecast in April after hitting four-month low in March. Coupled with rebound in April existing home sales, a surge in new home sales fuels investors’ optimism over recovery in the world’s biggest economy since animprovement in the housing market helps boost consumer expenditure and spur demand in durable goods in coming months.
New home sales climbed 3.3 percent at a seasonally adjusted annual rate of 343,000 units,U.S. Census Bureau and the Department of Housing and Urban Department jointly reported today. The print is well above median projections of 335,000 units from the Bloomberg News Survey. Meanwhile, sales in March were upwardly revised to 332,000 units from 328,000 units. Still, sales of new homes were far from the average 700,000 annual rate that recorded in healthy market.
Recent improvements in labor market and exceptionally low mortgage rate made home more affordable for new buyers in some parts of the country. April new house sales advanced in three of four U.S. regions. The Midwest registered the biggest monthly gain, up 28.2 percent to 50,000. Similarly, sales in the West mounted to 88,000. On the contrary, new house purchases in the South unexpectedly tumbled 10.6 percent to 177,000 units.
The median sales price of new house sold in April was $235,700 while the average sales price was $282,600. Besides, house price index gained 1.8 percent last month compared to 0.3 percent increase in March, Federal Housing Finance Agency said today. House price purchase index rose 0.6 percent in the first quarter in contrast to 0.1 percent decline in the previous quarter.
USDCAD 1-minute Chart: May 23, 2012

Chart created using Strategy Trader – Prepared by Trang Nguyen
The U.S. dollar strengthens versus most of its major peers except its Japanese trading partner about Greece’s debt problems and more rumors on Greek Euro exit. The greenback extends gains against the single currency after the home sales report. TheRelative Strength Indicator crossing below 30- territory during thirty minutes signaled that forex trading crowd was aggressively selling off euro in favor of greenback. At the time this report was written, the euro trades at $1.2582, below 20- and 50- minute exponential moving average lines.

"!" Loonie Extends Decline as April Ivey PMI Hits 9-month Low

04 May 2012 14:52 GMT  THE TAKEAWAY:Canada Ivey Purchasing Managers Index Fell to 52.7 in April> Lower Employment, Supplier Deliveries and Prices Levels > CAD Extends Loss vs. Major Peers
Purchasing activity in the Canadian economy expanded at the slowest pace in nine months in April amid weaker employment gain, lower price pressures and drop in supplier deliveries.
The Canadian Ivey Purchasing Managers Index (PMI) disappointedly fell to 52.7 on a seasonally adjusted basis in April from 63.5 registered in March, the Purchasing Management Association of Canada and the Richard Ivey School of Business jointly reported today. The reading was significantly meager compared to April 2011’s 57.8 and April 2010’s 59.0. The print also falls short of consensus forecast of 61.0 from Bloomberg News survey. Figures over 50 indicate expansion; otherwise values below 50 signify contraction.
Ivey Employment Index for April slightly decreased to 52.2 from March’s 52.7, pointing to weaker employment gain last month. Canada’s unemployment rate fell to 7.2 percent in March from 7.4 percent in February. Yet, analysts have expected the jobless rate to climb again to 7.3 percent last month. Besides, price pressure continued to cool down with the prices index standing at 60.3, the lowest level since August 2010. Persistent strength of the local currency caused additional downward pressure on Canadian inflation.
Ivey Supplier Deliveries Index dropped to 47.4 last month from 48.8 in March, indicating that deliveries were slower than February. In contrast, inventories unexpectedly jumped back a positive territory with the sub-index expanding at 56.8 in April after contracting to 45.7 in the previous month.
USDCAD 1-minute Chart: May 04, 2012

ay 04, 2012

Chart created using Strategy Trader – Prepared by Trang Nguyen

Canadian dollar loses ground versus most of its major peers except higher-yielding currencies (Australian dollar and New Zealand dollar) in the North American morning trade today as dismal U.S. employment report dampens risk appetite. The loonie immediately extends loss versus its major peers in the minutes following the weaker-than-expected Ivey PMI report. As seen from the 1-minute USDCAD chart above, the greenback advanced 30 pips against the loonie, rising to the session high of $C0.9940 from $C0.9910. The Relative Strength Indicator crossing above 70 indicated that market participants have been cutting their loonie holdings in favor of the reserve currency.

::: Cable Extends Declines Following Weak UK Service Sector Expansion

03 May 2012 09:07 GMT THE TAKEAWAY: UK PMI Services comes in at 53.3 for April, less than 54.1 expected -> Gains in new business in the service sector were outweighed by growing margins -> Cable rises, but sterling takes gains against euro UK Purchase Manager Index for Services came in at 53.3 for April, it’s lowest point in 2012 and well below analysts’ 54.1 expectations. The index result is still above 50 and therefore signals continued growth in the service sector, but it is lower than last month’s 55.3 result. The PMI has remained positive for 16 consecutive months, but April’s expansion was the weakest since November.
Service sector managers’ expectations remained high in April as there were gains in new business; however the margins for business rose as input costs went up and output charges remained the same when compared to March.
The PMI service is a survey based on material purchases in the service industry and managers’ expectations for the future; the index can be seen as a good gauge for the economy on whole, as services provide for 75% of the UK’s output. April’s PMI manufacturing result was also weak and the UK has entered a technical recession following last quarter’s lower GDP.
 Cable fell following the PMI release, continuing an earlier session drop from the 1.6200 level. However, sterling gained against the euro following the index news, possibly the result of further risk-off sentiment.