EUR/USD Daily Commentary for 5.6.09

The EUR/USD’s rally topped out yesterday as we expected, with the S&P futures hesitating at 900 while investors await Thursday’s flood of stress test news and economic data. Yesterday’s decline came on minimal volume, showing there is presently insufficient conviction behind the pullback to send the currency pair tumbling. The EUR/USD is stabilizing above Monday’s lows, and could bounce back a bit and trade sideway’s between now and the ECB’s meeting on Thursday. We maintain our bullish outlook on the EUR/USD since no key fundamentals were broken and the momentum remains to the upside with the currency pair trading comfortably above our uptrend lines.

Crude Daily Commentary for 5.6.09

Crude futures continued their consolidation yesterday on marginal volume. However, yesterday’s volume was substantially higher than Monday’s meaning we could see large activity and volatility today. The futures are attempting to position themselves for a rally as they realize April highs suddenly aren’t so far away. If the ADP Non-Farm Employment Change and crude inventories each beat analyst expectations, crude futures could push nicely above May highs towards our 3rd tier uptrend line.

Gold Daily Commentary for 5.7.09

Gold has surged higher in reaction to the surprise addition of funds to the BOE’s quantitative easing operation. In addition to the BOE’s decision, the ECB has announced the implementation of alternative liquidity measures of its own. The ramp up in liquidity around the globe is creating fear of future inflation, which in turn is boosting the price of gold.

GBP USD Technical Forex Analysis for Forex Traders

GBP/USD was trading in the range of 1.5150-1.4980 area early in this week .It is expected to make highly volatile moves today during the BOE and ECB interest rate announcement time and also during ECB press conference time.

GBP/USD is expected to break the initial high (1.5156) and low (1.5101) set for the day during European and US sessions. A low in the range of 1.4850-1.4900 could be formed during European session and a high of 1.5200-1.5270 could be formed during US session before tomorrow another big event NFP data release.