Major headlines for forex news only do you good in two circumstances. The first is you read the headline the minute it is posted. The news here was actually posted for early morning Asia meaning late Sunday for North America. By the time it was read and assessed here it was already old. This brings the conversation back to the second circumstance. When data is passed a minute or two in age, the only way it can be used is for long term trading. If you read this in the same week it was posted you can understand where the week might have headed and thus trade for the day based on the longer trend. For those who might read it a year from now the updates might seem superfluous, yet on a long term trade or a consistent trade on one pair old news can show repeating patterns.
Forex News for the Day Shows USD Steady
The USD has had a bit of a trip in recent weeks. At first news was good coming out of July based on good economic news. Some of the August forex news started showing the dollar weakening due to economic change ups. Now it seems the USD is holding steady when compared with Asia. Support levels have lasted a bit long on Asian pairs with USD involvement. These major levels were almost reached due to declining data for the USD.
The Monday news suggests these almost reached support levels could create a rebound. If the USD/JPY is at 98.17 but rebounds to 98.72 there is a change of new trends emerging. In fact this was the case. The support level for the USD in which the yen was favoured actually rebounded to the 98.72 resistance level.
Even the USD in the EUR/USD was showing signs of steadying according to the same forex news. The EUR/USD held at 1.3381 after hitting a peak resistance of 1.3452 and lows at 1.3335. The new resistance is showing at 1.3370 with the support at the same.
What this steady appearance in the charts means is that in Asia the USD is holding at a better rate than in recent weeks. For the EUR/USD counterpart the Euro is actually holding better ground on the steadying of the USD.
Forex News Interpretations of Risk
Forex news experts believe that the price action seen in the previous week and following through on Monday is showing that the upside risks are on the rise meaning the oversold economy is starting to steady and that a bullish reversal is going to be seen.
In terms of indexes like the commodities index and ETFs there is definite interest in going in for the USD. In other words speculators are looking at forex news and they feel confident that the USD is going to be favoured at least in commodity futures and forex futures and funds. Such things help the spot market too. Despite the positives there are still some negatives like rising mortgage rates tanking new sales in homes.