Dollar Continues Friday’s Growth | ForexGen Signals

The U.S. dollar continued to grow today during the Asian trading session as the traders followed the Friday’s trend and are now expecting some hawkish commentaries from the next Ben Bernanke’s speech.

Despite the weak report on the employment situation, which was released last Friday, the investors saw it as a rather positive signal and switched to buying the dollar, which lead to the new weekly minimums on EUR/USD.

Dollar growth against the euro, the Japanese yen and British pound stimulated the fall on the oil market today. But some market analysts expect the EUR/USD rate to return to the high levels of the last Thursday near 1.5760 later today.

Ben Bernanke, the Chairman of the Federal Reserve, will be delivering a speech at Federal Deposit Insurance Corporation?s Forum on Mortgage Lending to Low and Moderate Income Households tomorrow. Traders expect that his commentary may have some positive effect on the U.S. currency.

EUR/USD fell down from 1.5691 to 1.5661 as of 10:54 GMT today, but the lowest daily value was at as low as 1.5611, which is the lowest level since June 25. USD/JPY opened at 106.81 today and rose to 107.44, while the daily maximum is already at 107.70.

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NZD Risks Falling Low against Yen | ForexGen

According to the analysts from Citigroup Global Markets Inc., the New Zealand dollar may experience the lowest value against the Japanese yen in more than 10 month if it closes below the current triangle pattern support line.

NZD/JPY currency pair is supported at 79.97 level, where the ascending trendline of the triangle pattern is clearly visible on the weekly chart. The descending trendline of a triangle starts from the highest point of the week of July 22, 2008, while the ascending trendline starts from the lowest point of the week of August 12, 2008.

The weekly close below the support trendline at 79.97 will trigger strong downtrend on the NZD/JPY pair, which may last to the March low near 76.71 and if that level is broken to the lowest point of the triangle near 74.26.

The currency pair opened at 80.74 today and is traded near 80.73 as of 7:44 GMT. This weekly loss is also negligible as the week opened at 80.75. Last week NZD/JPY lost almost 1 percent.

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Bank Indonesia Raises Borrowing Costs | ForexGen

The Bank Indonesia increased the interest rates today for its third meeting in a row to efficiently fight the accelerating inflation caused by the growing food and oil prices.

The central bank voted for the interest rate to be raised from 8.5 percent to 8.75 percent. The only reason the government wants to hold the rates that high, despite the unpopularity of such measures, is the fastest price growth in Indonesia in the last 21months.

Although the rate of the Indonesian rupiah remains quite steady against the U.S. dollar since April this year, the USD/IDR rate may experience some decline, as this interest rate hike may cause more investors to secure their assets in the Indonesian currencies and get a higher yield.

The rate increase wasn’t a surprise for the market analysts — the growing fuels costs cause protests by the transportation workers world-wide and Indonesia isn’t the exception. Despite the fact that the high borrowing costs may hurt the position of the current President Susilo Bambang Yudhoyono on the general elections next year, the inflation remains the central bank’s main priority.

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Dollar at 2-Month Minimum versus Euro | ForexGen

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The U.S. dollar reached its lowest value against the European currency in more than two months today as the traders are waiting ADP report on the June jobs dynamics and expect it to show a first decline in four months.

Automatic Data Processing, Inc. reports on the employment in the non-farm private business sector each month, relying on the private data of its business clients. June report will be released today at 12:15 GMT and the median analysts’ forecast is a decline by 20k after 40k gain in May.

The dollar also declined against the Australian currency today as the macroeconomic statistics there pushed the AUD rate higher against almost all other currencies. Despite loses against euro, Australian and New Zealand dollars, USD managed to grow against the Great Britain pound today as the Bank of England will probably abstain from increasing the rates and may even cut the interest rate during its next meeting on July 10.

Although the dollar is trading quite low this week and is experiencing a downside daily trend against euro since June 16, in a longer term period the EUR/USD pair is still going sideways. The approach of the period’s maximum levels may trigger the sell-out on the pair by the range speculators.

EUR/USD went up today from 1.5793 to 1.5813 as of 8:26 GMT with a maximum at 1.5849 (the highest level since April 24). GBP/USD dropped 1.9953 to 1.9894, while AUD/USD rose from 0.9551 to 0.9608.

Yen Shows Growth on Moody’s Rating | ForexGen

The Japanese yen showed some really strong growth against the other Forex most-traded currencies today as the investors favored the Moody’s upgrade of the Japan’s yen debt rating.

Despite the weak performance of the Japanese stock market today the country’s currency showed one of the fastest growing day this month against dollar, euro and pound after Moody’s news about rating upgrade. It also rose against the Australian and New Zealand dollars today.

Trades generally consider the upgrade of the Japanese domestic debt securities from A1 level to Aa3 a great opportunity to go long on the yen. According to the Moody’s the Japanese economy won’t be as damaged by the global financial crisis as the economies of the European countries and U.S.

USD/JPY declined from 106.21to 105.32 today as of 9:06 GMT, while the lowest daily value was 104.98. EUR/JPY sunk down from 167.55 level to 166.61, with a daily minimum at 166.08 (lowest in more than 2 weeks). GBP/JPY experienced a biggest daily drop since June 2 today — it fell from 211.79 to 210.04 with a daily low at 209.39.

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