Dollar In Freefall
The USD fell to a record low for the third day in a row.
The slow down in the economy as well as poor figures for US labor led the dollar lower today. The past few days of negative data increases speculation that Bernanke and the Federal Reserve will cut interest rates further.
“We are on the way to recession,” said Robert Fullem, a vice president of U.S. corporate currency sales at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. - Bloomberg
The US Dollar Index touched the lowest since it began in 1973, falling to 73.80. The fall came after the Labor Department announced jobless claims climbed 19k to 373,000 in the week ending February.
A Look At The Chart
Yesterday the 1-hour chart showed some negative divergence with the EURUSD, however after a period of ranging, the dollar took a further hit today falling to $1.5196 per Euro. The 1-hour chart shows the completion of a five wave pattern, of course this is a snapshot of the larger picture if we were to scale up to the 4-hour or daily chart. The chart also shows a small corrective a, b, c wave pattern, before a possible further leg-up. Expectations would be for further dollar weakness, bearing in mind interest rate cuts looking likely.
[top]
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
[...] to our recent report on the USD record-breaking fall against the Euro, we have seen forecasts of further USD declines in 2008 against the Euro, Yen and [...]