Members login
Currencies Update: The dollar falls for the third consecutive week against the euro
Written by article default Friday, 01 October 2010 03:17
The dollar fell for the third consecutive week versus the European currency, following additional signs indicating the Feds will adopt yet a new round of stimulus measures to help support the economic recovery in the US. Thereby demand on the dollar remains weak.The dollar declined against the European currency during the Asian session, recording a high of 1.3666 and a low of 1.3629, and now the pair trades around 1.3662, trying to reach the next level found at 1.3700. The daily and four hours momentum indicators show the pair is within an overbought area.
The British pound inclined slightly against the greenback during today's session, trading below the 1.5780 level. The pound recorded a high of 1.5747 and a low of 1.5720. The daily momentum indicators support the pair’s decline since it reached an overbought area at the level 1.5870. While the four hours momentum indicators give buying signs, supporting the pair's incline on the short term.
The dollar/yen pair dropped today for the second week on a row. The pair recorded a low of 83.54 and a high of 83.54, and now is trying to reach the 83.15 level following additional expectations that BoJ might intervene again in the currency markets. The pair's downside targets are found at 83.00 then at 82.40. The momentum indicators show the pair in an oversold area.