Ã¢â‚¬Å“This is the time of different data releases and examining the results of the last trading activities for taking inferences for formulating policies to give some consistency to the trade.Ã¢â‚¬
There is some steadiness in the global bonds trading due to firm US sales records. Data and information stopped prior to Thanks giving trade session of today and the technical indicators stay buoyant but the overbought bond trades indicates that the bonds may take break.
USD in response to this trading low, the buy and sell operation of the USD at market does not indicate real weakness of the market but indicating the consequences of the difference in the Fed and ECB decisions supporting the currency pair of EUR/USD. The pair may experience the re-testing at the market.
Today is the fully packed day especially in US with many data releases in line like the consumer spending figure, durable order figures and the initial claims, home sales report and the report of Michigan survey are scheduled to release today.
At the global market, there are fluctuations in the risk sentiments that keep the price action board active during the complete trading hours.
Yesterday, EUR/USD trade demonstrated two unlike facades. At the beginning of the trade in Asia and Europe, the currency was trading under pressure.
Asian trades were under red zone and down beating news from the European-banking sector made the trade to reach in the red zone.
EUR/USD traded low at the range of the 1.4890 in the early European session, but soon the trade reached the straight bid. The rumors about IFO strong records are not the basic reason of drop but the pair re-bounced due to figures of GDP, CS house price line and consumer confidence data that are better than the expectation.
The five-year sale reports of US bond equity and the FOMC meeting minutes pushed the trade overnight. The five-year US bond sale did very well and made the US bond yields lower. The FOMC meeting minutes indicates growth in 2010.
The data releases yet to come and the strength of the figures would lead the direction of the Forex trading operation.
Finexo, at this point of trading suggests traders to move cautiously because right now the market can take a sudden U-turn depending on the volume of the figures. The tends may turn up or down in a moment and by seeing the Forex charts more clearer image of the market can be viewed.