The Greenback heads into the last day of March prime for what could be one of the more defining points of 2008. After last week's mixed batch of economic data out of the US, the Dollar plunged against a majority of its most traded currency rivals, most notably the EUR. It was not to long ago; following the last 75bp cut, that investors thought the greenback was pulling itself out of the mud to finally ride a significant bullish trend. Instead, we enter April prime for what could be a period of record lows for the Dollar and the US economy. The... ( read more )
Archive for March, 2008
March 28, 2008 - The USD Is Bearish Again.
The USD rallied yesterday against the EUR, after a data showed that the U.S. economy grew in line with market expectations during the 4th quarter.
Yesterday's finalized GDP figure eased fears of a steeper slowdown after it printed at 0.6% - unchanged from the month prior. A fall in U.S. Unemployment Claims in the latest week further helped the USD regain ground after it posted sharp losses in the last two sessions. Personal Consumption data was also dollar supportive as it unexpectedly rose to 2.3% from 1.9%.
However, the data showing a ... ( read more )
March 28, 2008 - Forex Technical Analysis
EUR/USD
The pair is consolidating at 1.5780 on the short term, and it appears that the momentum on the 4 hour chart is moderately bullish. The daily chart is showing that an attempt to breach through the 1.5850 is quite imminent, and might occur as early as the beginning of next week. Going long appears to preferable today.
GBP/USD
The cable is currently correcting down on a local level within the bigger bullish trend. The cross on the 4 hour chart indicates that the bullish trend's comeback is at the doorstep. A strong breach through ... ( read more )
March 27, 2008 - The Euro Rally Calms
Yesterday, the greenback continued its freefall back into a tough position against most of its currency rivals. US economic data returned unexpectedly poor and took what had been a moderate bearish trend and let it loose, forcing the Dollar back toward lows against the major currencies, most notably the EUR.Source: Wikipedia The EUR/USD pair soared back over the 1.58 key level, at some points peaking close to 1.59. This does not bode well for the Fed, as many will look towards them once again to tweak interest rates to cope with the weakening e... ( read more )