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Closing in on Official Shopping Season by GoLearn Forex

The DJIA was flat Friday closing the day down just 14.28 points.  The week saw the DJIA gain 9/10th of a percent while most Global Equity Markets finished the week in negative territory.  The Greenback gained as risk was held in check as the DXY closed above 75.57 in the forex market, for the first time since November 12th. 

 

The Kiwi was the big loser, giving up 3.2% and the cable gave up 1.84% after breaking through near term resistance.  The week was marked by global concern over whether the market can sustain their phenomenal 62% gain since the DJIA hit its March lows.  Adding to investors worries will be the lack of liquidity in the market through the remainder of the year.

 

Monday and Tuesday maybe volatile in the Forex Markets as the U.S has Holiday on Thursday.  Typically and the preceding Wednesday and following Friday are marked by very light volume days.  Friday kicks off the official Holiday shopping season.  On the economic data front Canadian Retail Sales are set to print on Monday and PMI in the EUR zone is due out as well.  U.S Existing Home Sales will print tomorrow and expect that traders will be watching this closely in light of the poorer than expected new home data that came out last week.  A print below expectations should pull even more risk off the table and we would expect the Dollar to strengthen.

 

Upcoming Forex Events for November 23, 2009

 

EUR     ECB President Trichet Speaks          

CAD    Core Retail Sales (MoM)       Forecast  0.40%  Previous  0.50% 

CAD   Retail Sales (MoM)                 Forecast  0.60%  Previous  0.80%  

USD    Existing Home Sales               Forecast  5.70M  Previous  5.57M