FOREXYARD: Forex News Blog | |
| Posted: 23 Sep 2010 02:49 AM PDT
The dollar continues to fall as traders sell the dollar in light of the Fed's recent comments that open the door for more quantitative easing. However, the euro is rising despite a selloff in equities. Yesterday the Dow Jones Industrials finished the day down 0.2%. Despite the down day for equities, the dollar was also weaker with the euro and the Swiss franc putting in a strong performance. Today traders are going to be eyeing data releases in the US for direction in the FX markets. USD – Unemployment Claims – 12:30 GMT The weekly data for new unemployment benefits may surprise the market with a positive outcome, helping to increase risk appetite and a rise in the rate of the EUR/USD. Traders should be targeting their EUR/USD bets at 1.3510.This level is the 50% Fibonacci retracement from the 2009 high. Support is found at the height of the June to August bullish move at 1.3330. USD – Existing Home Sales – 14:00 GMT This report measures the annualized number of residential buildings that were sold in August. If the report comes in positive, it is typically dollar positive. But this time we may see the report serve to increase risk taking and provide a boost to the weakened US equity markets. This would in turn spur traders to sell the dollar and buy higher yielding currencies such as the Aussie dollar. The AUD/USD could rise to yesterday's high just below the 0.9600 level. |
| Dollar Hits Its Lowest Since April Posted: 22 Sep 2010 11:22 AM PDT
The U.S currency fell to its lowest level against the euro since April and extended losses against other major currencies on Wednesday, a day after the Federal Reserve said it was ready to take further action to boost the U.S. economy. Analysts said that the catalyst for such pressure is the threat of additional quantitative easing undertaken by the U.S. central bank. The euro rose 1 percent versus the dollar after climbing 1.5 percent on Tuesday, helped by buying by Middle East central banks, traders said. It firmed past its 200-day moving average on Tuesday, pointing to more gains on the charts. The dollar also fell against the Swiss franc dropping to 0.9899 francs, its lowest since April 2008. Against the Japanese yen, the dollar fell to 84.43 yen, down from 85.07 Tuesday. The dollar has hovered near 85 in the week since Japanese monetary authorities intervened in the currencies market, after the dollar hit a 15-year low of 82.85 yen. But the market was wary about selling the dollar against the yen too aggressively, anxious it might trigger another wave of intervention by the Japanese authorities that wrong-footed many investors, including hedge funds, last week. |
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