The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • China raises reserve requirements on banks yet again to curb an overheating economy.
  • Moody’s downgrades Irish bonds again and leaves them on negative outlooks to the last level of investment grade.
  • Spanish and Greek rates above German debt reach record levels of over 10% above the prevailing German bond market.
  • Gold surges to record highs on inflation concerns and European sovereign debt issues
  • US equity markets closed the week with modest gains, Dow up 0.46%, S&P up 0.39 and Nasdaq up 0.16

AUD/USD
The only thing helping keep the AUD/USD supported is the fact that Gold and other commodities are approaching record highs. This however is being offset by the fact that the risk currencies (EUR in particular) are beginning to struggle. On the open it has been sellers galore and if support at 1.0520 breaks it could be a quite bearish signal targeting 1.0400 initially

[Sign up here to get this report delivered to your inbox daily]

XAU/USD
Inflationary concerns around the globe are seeing traders flock to Gold as a protection wealth. China raising reserve requirements shows that they are having issues containing inflation but the biggest concern for traders is the US which is slowly getting back on track and expected to have inflationary pressures later in the year.

EUR/USD
EUR has been under continued selling pressure after the failure to break up through 1.4520 late last week and the bears were helped along by yet another Moody’s downgrade of EU debt. The selling pressure has continued into Asia today but strong support lies at 1.4380 and for the bears, many are wanting confirmation of a break through there before selling again.

[Sign up here to get this report delivered to your inbox daily]

GBP/USD
GBP continued to drift lower during the final session of the week and as we open the market we sit right on the critical support level of 1.6300/10 region. Traders are still bearish but respecting this support level and realistically looking for a break before getting too short down here. 1.6280 needs to break for there to be renewed selling interest.

USD/JPY
USD/JPY continues on its downward drift and patient traders are being given the opportunity to get short at brilliant levels. Those who haven’t got short are again being patient looking to sell rallies towards 83.40 or alternately selling the break of 82.90 targeting 82.10/20 in the first instance

AUD/JPY
AUD/JPY continues to consolidate in what looks like being a bearish formation. Traders seem content to play the range initially, but being cautious of a break lower as the longer we stay in the range, the closer we are to the breakout. 87.00 on the downside is the important level to watch if looking to trade the break.

[Sign up here to get this report delivered to your inbox daily]

OIL
Oil continued higher as commodities across the board were higher on Friday. The market stopped dead in it’s tracks however at previous resistance of 110.00 and traders still have bullish sentiment, but being respectful of this level and looking to buy the dup back towards 108.00.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.