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Currencies Update: Feels like a re-run show to last week’s trading session
Written by article default Wednesday, 29 September 2010 10:43
Nothing have changed among investors where they keep targeting gold as a safe investment in order to protect their wealth, while the dollar continue to descend on speculations the Fed will inject further stimulus money into the financial system.The US dollar index, a six-currency gauge of the dollar performance, traded lower reaching eight-month low in today’s trading session at 78.84 levels, compared with the opening levels of 78.87. The index reached the highest at 78.90 and the lowest at 78.61.
US Consumer confidence report released yesterday showed a drop, while the Institute of Supply Management is forecasted to show that business conditions in the manufacturing sector deteriorated to 55.7 during September.
The Swedish Kronor rose against the Euro and the Dollar after Consumer Confidence report in the country rose higher than expected.
With confidence indicators all showing a rise in the Euro-Zone, the euro-dollar pair extended its rise to trade at 1.3614, compared with the opening levels of 1.3584. The pair managed to reach the highest at 1.3638 and the lowest at 1.3564.
Expectations signal that the pair will ascend further, as it breached 1.3500 levels yesterday, targeting 1.3700.
With regards to the royal currency, the pound-dollar pair traded unchanged at 1.5800, after rising to a high of 1.5873.
UK’s GDP Final estimate for the second quarter of this year came consistent with expectations at 1.2 percent on the quarterly basis and 1.7 percent on the yearly basis.
A bullish intraday direction is still at play, with targets at 1.5935, but a retesting for 1.5725 is highly anticipated before the pair extends its rise. If the pair managed to sustain trading above 1.5800 it would pave the path for to target 1.5935 and 1.6000.
The Japanese Yen appreciated against the dollar, leaving the BoJ in a tough spot to deal with stronger currency. The first intervention since 2004 by the government two weeks earlier failed to depreciate the currency as it returned near the sale levels since the intervention was announced.
The dollar depreciated against the yen on the daily scale to trade at 83.66, compared with the opening levels of 83.84, while reaching a low of 83.48.
As the pair breached 84.00 levels, a downside wave will persist to 83.00 levels before the pair performs an upside correctional move that might force a re-test for levels at 83.60.