Yesterday the greenback continued to trade on a slippery slope and although it only lost some slight ground against the EUR, it did slip significantly against most of the majors. Yesterday was relatively light on U.S data with the main event being the Consumer Confidence figure which released well below the expected of 99.0 at 95.6. This additional piece of negative data only marginally increased the problems the fragile greenback which has been under immense pressure the entire week ahead of today’s release of the Fed’s Interest Rate State... ( read more )
Archive for October, 2007
October 30, 2007 - The USD Floats – Ahead of Tomorrow’s Expecte...
The fate of the greenback will continue to be questions today, as the decision to cut interest rates by the Fed is imminent. Halloween (Wednesday October 31st), of all days looks to be the one that will see the US Federal Reserve make, what has become nothing short of an obvious move regarding the US economy. Though the dollar remained relatively unchanged yesterday, investors continue to expect the fall of the greenback.
Today will see the release of two key reports that are anticipated to add to the gloomy US economic picture. Firstly, th... ( read more )
October 29, 2007 - The Week Open With Fresh EUR/USD High Of 1.4420
Yesterday, the USD dropped to record lows against the EUR due to speculation that the Federal Reserve will cut interest rates later this week as the U.S. housing slump reverberates throughout the economy. Interest-rate futures show around a 90% chance that the Fed will lower its 4.75% overnight lending rate between banks by at least a 0.25% point on Wednesday. In addition, the greenback will find little support given the sharp rally in Crude Oil that has already reached the 92.60 level. Upcoming U.S economic data does not look to help the green... ( read more )
October 29, 2007 - Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The pair has breached a fresh all time high and is now floating at 1.4420. Both the 4 Hour and the daily chart are showing a bearish cross on the slow stochastic, which indicates that there might be a correction back to the 1.4360 level before the next peak will be tested.
GBP/USD
The cable is going through a very strong up trend, and we can see new momentum on the hourly charts growing stronger. The daily chart indicates that the next target price might be around 2.0620.
USD/JPY
The pair... ( read more )
October 26, 2007 - Strong Presure on The Greenback – EUR/USD Break An...
Yesterday, the greenback continued to weaken after another round of disappointing data.
Durable Goods orders fell for a second consecutive month by -1.7% in September, much lower than the expectation of 1.5% which indicates that the credit crisis is refusing to vanish.
Last month’s contraction in Durable Goods was also revised from -4.9% to -5.3%. Jobless claims dropped mildly but came in much worse than expected at 331k. New home sales recovered to 0.77M in September but it was still below expectation of 0.78m and is mainly due to a large... ( read more )