Forex Trading Signals For A Choppy Market On April 10, 2015

Forex Trading Signals For A Choppy Market On April 10, 2015

On Thursday, the US dollar was up against most other major currencies in the wake of data that showed better than expected jobless claims. The US dollar index climbed 0.82{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} to 99.05, while the euro fell against the greenback, with EUR/USD changing hands at 1.0682 – a fall of 0.92{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}. The US dollar was also up against the British pound and the Canadian dollar.

currency chart

US jobless benefits better than expected

The strength in the American currency was in part due to a report from the US Department of Labor, which said that the number of people filing for initial jobless benefits last week climbed less than expected. The total number of initial jobless claims came in at 281,000, a rise of 14,000 from the week before. However, analysts have predicted that the number would rise by 18,000 to 285,000.

The dollar was also helped by a statement yesterday from New York Fed President William Dudley, who said that economic data would determine the timing of any interest rate rise. He also said that a rate rise in June was still a possibility if the job market continues to remain strong. This position was supported by a separate statement from Jerome Powell, the Fed Governor, who said that he could consider tightening monetary policy even though inflation is currently low, and that if economic news over the next couple of months showed that the US economy continues to recover, a June rate rise is still on the cards.

German economy strengthens

Although the euro was down against the dollar on Thursday, there was positive news out of Germany. Data early in the day showed that industrial production in Germany was up 0.2{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} in February, besting expectations of a 0.1{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} rise. The strong performance was due in large part to an increase in the production of capital goods and energy. In a separate report, February was a strong month for German exports, which rose 1.5{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}. Imports in the euro zone’s largest economy were also up.

UK trade deficits grows

News was less positive in the UK, as GBP/USD slid 0.85{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} to trade at 1.4742. A report from the UK Office for National Statistics showed that the trade deficit in the UK expanded to £10.34 billion in February, up from January’s figure of £9.17 billion. Analysts had only expected that the trade deficit would come in at £9.00 billion. January’s number was also revised upward from an earlier reading of £8.41 billion. In separate news, the Bank of England left interest rates that 0.50{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}, a record low that has been in force since March 2009. The BoE also kept the total amount of asset purchases from central bank reserves at £375 billion.

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SOURCE: Cutting-Edge FX Technology – Read entire story here.