WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Forex Trading: London Market Wrap

Posted by Chris Advincula on May 7, 2013 7:39:00 AM

May 7 Tuesday 11:45 GMT

EURO

The euro rallied 63 points to 1.3130 from 1.3067 against the dollar after Germany posted a better than expected increase in manufacturing orders in March, the second straight monthly gain in domestic and foreign demand. The weaker yen also gave additional buoyancy to the euro. German manufacturing orders rose +2.2% in March, above the median forecast of -0.5% after a slight downward revision of +2.2% from +2.3% in February.The gain in March pushed the level for the first quarter into positive territory, +0.4% from the 4th quarter of 2012.

describe the image

 

YEN

The yen fell against the major currencies as market participants pushed the rates higher on a short covering rebound and as the euro gained over the Japanese Yen. The dollar initially fell to 98.85 from 99.40 in the prior Tokyo market after the Japanese holiday yesterday. However, technical buying quickly ensued in Europe which took the rates back to 99.35. (+45 points). Euro-yen rose 100 points to 130.30 from 129.30 aided by the increase in German manufacturing orders of +2.2% in March.

euro.yen.5.7 resized 600

 

SWISS FRANC

The Swiss Franc fell and pushed the rates higher against the euro. Euro-Swiss rallied 80 points to 1.2335 as the market dipped to 1.2255, while Dollar-Swiss rose 70 points to 0.9438 from 0.9368. There were unsubstantiated rumors in the market that the Swiss National Bank was the sentry guard bidding at the 1.2250 level.

eurchf resized 600

 

AUSTRALIAN DOLLAR

The Australian Dollar fell further to 1.0165 from 1.0250 (-85 points) in Europe following the 25 basis point cut of Reserve Bank of Australia’s Cash Rate.The central bank’s decision did not came out as a surprise to some, as a few analysts have predicted a 60% chance of an RBA cut. RBA Governor Glenn Stevens said that the move was appropriate to encourage sustainable growth in the economy and inflation was consistent with the target.

aussie.5.7 resized 600

Charts: FXTrek.com

 

Chris Advincula

WorldWideMarkets

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!