Technical Analysis
Euro Breaks $1.60 After Hawkish ECB Comments
The euro broke through the $1.60 mark against the dollar after European Central Bank governing council member, Yves Mersch gave hawkish comments suggesting the bank may revise its inflation target upwards.
The euro rose to an all-time high of $1.6018 against the dollar, before retracing to $1.5976.
Hans Redeker of BNP Paribas said, “we see the [...]
Euro Approaches Record High $1.5983
The Euro climbed to within a cent of the record high of $1.5983 set on the 17 April after speculation that the European Central Bank will raise interest rates.
The currency rose before the release of a US housing sales report which has previously shown a fall.
Jeremy Stretch, a senior market strategist at Rabobank said, “In [...]
Pound Declines Despite BoE Announcement
The Bank of England announced plans to improve the slowing economy by loaning banks £50bn to enable banks to lend to one-another.
The UK housing market has slowed as banks maintain higher interest rates and cease lending to new buyers. Despite the interest rate cuts that the BoE have instigated, the rate cuts have not been [...]
Euro Falls Back Against Dollar
The Euro fell back against the greenback after European Central Bank President Jean-Claude Trichet suggested the financial market crisis will continue longer than anticipated.
The ECB’s President continued with a hawkish outlook for the time being by leaving the benchmark rate at 4 percent.
Trichet said “we are experiencing a rather protracted period of temporarily high annual [...]
Euro Declines Against Dollar
The Euro fell against the USD and the Yen after Eurozone Retail sales data was released. The results fell below expectations signalling a slowdown in the European economy.
“Europe is not as close to a recession as the U.S., but there are signs the European economy is slowing and will continue to slow,” said Jay Bryson, [...]
Dollar Advances in EURUSD Pairing
The USD rose to it’s highest value against the Euro this year.
UBS and Lehman Brothers claimed they’re raising $19bn, bolstering investor confidence in the USD.
Lehman Brothers sold $4bn in stocks and UBS announced plans to seek $15bn in a rights offering, leading to the USD gaining against the Swiss Franc (CHF) and the Danish Krone.
According [...]
Gold Advances As Hedge
Traders saw a rise in the value of gold, silver and precious metal stocks. The weakening US dollar led to traders investing in gold as a way to hedge against the currency downturn.
Gold made it’s third straight quarterly gain, making it a consistent hedging commodity during times of market volatility and the general economic downwards [...]
Fed Rate Cut Looking Likely
The USD fell against the Euro for the fifth day on speculation of a Federal Reserve interest rate cut later today.
It is expected that the Fed will cut the interest rate by a full percentage point to steady the shaky economy.
The US economy hasn’t been helped with the news of Bear Stearns being bought [...]
Dollar Rebounds From $1.5651 Against Euro
The USD rose to $1.5565 after falling to an all-time low against the Euro of $1.5651.
The rise came after speculation that central banks will intervene for the first time in 13 years to strengthen the US dollar.
The rebound reduced the US dollars weekly losses which reached a 12 year low against the Japanese Yen, near [...]
Trading Currency After News Spikes
Today we have a classic example of a news spike. We can see a huge decline in the Euro against the USD, from highs in the region of $1.5490 all the way down to $1.5280. That marks a fall of around 210 points in only a matter of a few hours.
However, notice the 55-day moving [...]
