USD Is Stronger Today

Usd was marginally stronger in Asian session however markets continued to discounted the G7 communiqué and stronger US Retail Sales. Asian equity markets continue to trade in the green and European equity futures look to open above fair value. A good sign for growing risk appetite and carry trades. ECB's Mersch commented yesterday that the ECB doesn't have much room to cut rates this year. Mercsch's statement was unexpectedly hawkish in comparison to Trichet increased emphasis on growth risks last week. This punctuates the fact that the ECB is still very much committed to price stability ahead of growth concerns. We expect the Eur to stay supported in the near term and will be looking for a test of 1.5910. In Europe markets will be focused on the German Zew survey which should provide additional evidence that financial market sentiment is improving. The DAX has been performing relatively well since March as economic news encouraged the Eur. Howeve, while its level is still elevated it has not appreciated further. In the UK today's highlight will be the release of the CPI and RPI figures. We expected both figures to creep up further which will complicate the BoEs dilemma further. Market will very much be poised to trade depending which way inflation is heading and how subsequent effect on interest rate will be affected. In the US Empire State index and NAHB will be the day's final focus. Both looking to continue downwards at the fundamentals in the US have not marketable improved.

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EUR/GBP Reaches New Absolute Maximum

Great Britain pound fell down to a new absolute minimum level against the euro today as the fresh economic data from U.K. signaled that the output growth will probably slow down significantly.

The survey by the Royal Institution of Chartered Surveyors showed that more than at any time since 1978 (the year when they started to collect this data) of its members are reporting lower prices.

The British Retail Consortium also reported that the retail sales in U.K. decreased in March by 1.6% — for the first time in two years, signaling that a weakness in the consumer sector of the economy is accompanying the housing market slump.

EUR/GBP rose from 0.8010 to 0.8041 as of 9:02 GMT today on Forex. Its daily maximum was reached at 0.8063 before retracing to its current rate.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Market Brief

Holiday Mode

The greenback was slightly weaker in Asian session. It looks like the Usd will close this week up for the first time in a month thanks to the Fed aggressive action. London and US markets are closed today for good Friday and this fact should keep trading subdued. The sudden shift in the Usd could be reflective of the change market sentiment toward Feds unorthodox approach to monetary policy and inevitable ECB easing. While being lengthened by the commodity markets sell off. But we don't believe traders should get so bullish on the greenback just yet. The US economy still has plenty of downside risk and we expect the Fed to move closer to 1.00% by mid year. Until this plays out we still see Usd weakness and EurUsd heading higher near term.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

The Markets Today With ForexGen

Asian Session - Commodities Continue to Sell Off

Usd was stronger in Asian session as the commodity sell off carried over from the US session. We don't see any fundamental drivers for this sudden weakness but the combination of Fed aggressive action stabilizing market confidence and the pure weight of trading position seem to be the most likely culprit. However the combination of steady yields and weakness in gold and other commodities could indicate a period of strength for the Usd. In addition should the Fed signal a reluctance to ease further we could be setting up for the second leg of the "Usd smile" theory.

On the continent markets will be watching flash PMI to provide indication of the extent of the slowing down in economic growth in the eurozone. While feb composite rise was a positive sign the index points to moderation in activity. Markets will be watching diligently especially in light of the euro fall and growing prospects for a ECB move. A weak release will consequently weigh on the Eur.

In the UK retails Sales are likely to see some pull back from the elevated Jan release. In fact we could see Jan figure revised down. In light of yesterday's 7-2 votes as reported in the MPC minutes and the growing expectation of a near term cut, the Gbp should stay weak. Especially given the dramatic two day sell off from 2.0270 down to 1.9776.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.