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In another sign of an improving deficit picture, the Treasury on Monday said it expects to pay off debt in the current quarter for the first time in six years.
In a statement, Treasury said it now expects to pay off $35 billion of debt in the April-to-June quarter, compared to an earlier projection, given in February, that it would have to borrow $103 billion. This will be the first quarter that Treasury has paid off debt since April-to-June period 2007. The payoff “is emblematic of the turn in budget finances from horrible, to grim, on their way to steadily better,” said Eric Green, global head of rates and foreign-exchange research at TD Securities...continue The Canadian dollar rallied yesterday as positive macroeconomic reports made investors willing to risk and buy assets associated with higher yield. The currency maintains the gains today so far.
Falling US jobless claims and growing Britain’s economy improved the mood of traders. The positive sentiment resulted in rising prices for crude oil, the major Canada’s export. Futures for crude jumped as much as 2 percent to $93.28 per barrel in New York yesterday. Today’s economic data is expected to be also favorable. Analysts predict that the report will show growth of US economy by 3.1 percent in the second quarter of this year following the advance by 0.4 percent in the first quarter...continue Trade Idea: Buy USD/JPY on dips to 98.90; target 1.0140; stoploss 98.40.
USD/JPY continues to attract strong buying interests on dips amid recent reports out of Tokyo that Japanese institutional investors are beginning to shift a greater percentage of their portfolios overseas in search of higher yields than those offered in the domestic market. There is a special upside catalyst this week in the expiration of many large exotic option structures struck at the 100.00 this coming Thursday. Market makers will be keen to push prices through 100 to extinguish the risk from the barrier options from their books and avoid large DNT payouts. We also have “the rule of threes” working to our advantage in this case. Markets often take three bites at the apple before breaking major support or resistance levels. USD/JPY has stalled twice just shy of 100. Our bet is that third time will be the charm. Our target is just a few pips shy of the 1.0145 high set back in April of 2009...continue US dollar is trading mixed today, and is mostly rangebound, as Forex traders await developments. There is plenty to consider right now, between speculation of an ECB cut and interest in continued earnings reports.
Greenback is higher against the euro today, gaining as speculation that the European Central Bank will be forced to cut rates as economic news out of Germany continues to worsen. US dollar is lower against the UK pound, though. There is a bit of risk aversion in the currency market, and that is leading to flows toward low beta currencies like the yen. Dollar is down against its Japanese counterpart for this reason, even though at some point the yen is likely to weaken. For more forex training videos visit www.capitalforextraining.com
The Canadian dollar was rallying against most major currencies at the beginning of this week, but it fell against the US dollar and the Japanese yen today. The currency traded sideways versus the euro.
Fundamentals were not bad for the Canadian currency at the start of this week as stocks and commodities rallied. The Standard & Poor’s 500 Index of shares climbed 0.5 percent. Crude oil, Canada’s major export, advanced 0.9 percent to $88.76 per barrel. The currency remained under pressure though as many commodities, especially metals, were rather weak despite the recent bounce. Gold demonstrated the biggest daily drop in 33 years in 2013 and did not completely recover after the slump. USD/CAD rose from 1.0254 to 1.0264 and CAD/JPY declined from 96.72 to 96.28 as of 3:17 GMT today. EUR/CAD was flat at 1.3398. Via Top Forexc News Click on this Forex training link for more educational videos on how to trade Forex. - The US dollar/Swiss Franc currency pair formed a daily engulfing candle on Wednesday. This was followed by an inside consolidation day on Thursday.
- The recent price action is located just under the 200-period daily SMA as per the chart below. This is also close to the 0.9352 (24/3/13) daily low prior support level. USDCHF has so far failed to see any upside continuation following the engulfing candle, as it trades near this resistance confluence area. - Going forward, we will be monitoring any move back to the 0.9250 area for potential support, as this is aligned with the 61.8% Fibonacci retrace of the last leg higher and the price pivot level – as seen on the fig 2 weekly timeframe chart. - As we near the end of this week, USDCHF has covered 83% of the average weekly range and an associated 132 pips. - The past two weeks have seen weekly basis lower closes for this pair, a close above the 0.9282 area is needed to break this sequence...continue |