Posts tagged US Dollar

The FOREX market has seen some exciting movements recently.  Many believe the USD and the GBP are both ready to move. These two article explain what is happening.

DOLLAR POISED FOR ACCELERATION TO DOWNSIDE

Monday’s strong rally in global stock indices and break in the Dollar renewed talk of the resumption of the negative correlation between global equity markets and the U.S. Dollar. Aggressive traders appeared to be already placing bets today that the Fed would continue to leave interest rates low for a prolonged period of time. Today’s action suggests that investors could be getting comfortable with taking on more risky assets once again.

The chart pattern in the U.S. Dollar Cash Index suggests that a new secondary lower top is forming at 78.22 and that the trend is poised to turn down on a break through the last main swing bottom at 77.33. The next downside objective is 76.31 to 75.80, which gives the market plenty of room to the downside.

The Dollar opened the first trading session of the year slightly better but a strong surge in U.K. and China manufacturing data helped to pressure the Dollar overnight. These two better than expected reports triggered renewed interest in demand for higher risk assets. Speculation is that global manufacturing will provide the spark for a worldwide recovery.    –more

Pound Loses Ground Against Dollar

EUR/USD: After the euro rose rapidly during the first trading day of the new year, the pair has settled down substantially and moved into a sideways trading range.

More on CurrenciesEUR-JPY: Heading LowerForex: Dollar Turns RedEUR-USD Trading Higher The German report on the change in unemployment was much better than expected and showed that the largest contributing economy to the eurozone had 3,000 fewer unemployed persons than the previous month.
The euro received a slight kick upward on this news. However, it was still held back by a previous-month revision in the data that went from 7,000 fewer unemployed to only 1,000 fewer. This was the sixth straight monthly drop in German unemployment, which is a very positive trend. However, with an estimated 3.42 million people still out of work, it may be a little too early to celebrate.

GBP/USD: Through the early morning hours, the pound continued to lose ground vs. the greenback and dropped below the 1.6000 level before finding any support.    –more