US Fundamental

The Dollar was a little changed yesterday after the FED announced its decision to keep interest rate unchanged as expected. The statement following was seen as a little hawkish as it repeated worries about inflation pressures but failed to mention concern regarding U.S. housing market or slow down in growth.

GBP/USD - Technical Analysis (June/28/07)

what happen next?

wait until USD interest rate statement. i put sell stop on 1.9969 ..strong support on 1.9895 (if it's break then will down far)

Fundamental analysis (GBP) by Admin

On Wednesday, Sterling got pressure against the USD after break the resistance at $2 come up with the expectation of higher interest rate next week.
Sterling down 0.2% to $1.9950, economists expect the interest rate will be 5.75%.
John Gieve, Deputy Governor of Bank of England stated on tuesday, he gave vote to rise the interest rate in order to hold the demand of credit.
Towards to Bank of England's decision next week, market will focus on this meeting, the result could be use to measure the effect of the hikes interest rate since August, 2006.

Fundamental analysis (YEN) by Admin

Yen strengthen on Wednesday when the volatility of the stock exchange and the worry about the down of US mortgage sector, let trader to stop carry trade.

Review of Fundamental Analysis (USD) by Admin

USD weakened against Yen on Wednesday, June,27, after the report of Durable Goods Orders US (May) is lower than expected.
Trader become more wary to fluctuation on the carry trade after the volatility of the global market focus more on the US mortgage sector.
The actual Durable Goods Order down more than expected to -2.8% from 1.1% on April.
Dollar weakened 0.7% against Yen at 122.34.

Be careful with the effect of unwinding carry trade

Commodities ended lower as investors square their positions in the market. Gold hits its lowest record in three and a half months and U.S. crude futures fell by nearly two percents last night.

JPY report

The JPY continues to strengthen against EUR and the USD as investors unwind their carry trades position in the midst of volatile stock market resulting from concerns about fallout in the U.S. subprime mortagage sector.

Warning from Japanese Finance Minister Koji Omi about weakness of the country’s currency was helping JPY even further.