EURO The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4580 level and was capped around the $1.4745 level. The common currency reached its highest level since 11 December before coming off. Many traders believe European Central Bank has not ended its long-standing monetary tightening cycle and may be forced to raise the refinancing rate another 25bps. In contrast, other traders believe the ECB will be lowering interest
Archive for December, 2007
Forex Mid-Day Technical Report Dollar Reverses on Unexpected Rise in Existing Home Sales Dollar reverses earlier losses in early US session, riding on better than expected housing data. Existing home sales unexpected rose for the first time in 9 months from 4.97m to 5.00m annualized rate in Nov. Though one month’s data is definitely not enough to signal the housing market has turned around. Nevertheless, dollar still managed to hold on to near term support against Euro and swissy as traders
Euro/dollar surged amid thin trading conditions during the Christmas week. This strength should slow down this week. Initial resistance is…
The dollar tumbled across the board during the last week of 2007, and the carry trades were put on the…
Money is flowing back into the safe haven Euro, as a close ally of the United States, former president Mrs….
The dollar fell, completing its second annual decline against the euro and ending two years of gains versus the yen, as traders increased bets the Federal Reserve will cut rates again this January to counter an economic slowdown. The Dollar is trading around the levels of 1.4710 against the Euro, around the levels of 112.06 against the Yen and around the levels of 1.9960 against the Sterling. Odds the Fed will cut its target rate for overnight bank loans a quarter-percentage point from 4.25
The dollar tumbled across the board during the last week of 2007, and the carry trades were put on the back burner. With trading volumes thinned out the market took the US currency to the only logical direction, down, but currencies gained at different paces. The new year should start with the dollar on the ropes – unless the oil prices head lower unexpectedly. Have a happy and prosperous 2008! United States The dollar sank broadly last week versus the European and the commodity currencies,