If you like me... Bookmark me!...

Home » Forex

US dollar slumps on Duke’s comments

 
5 January 2010

The predominant theme of 2009 was of US dollar weakness, and this re-asserted itself overnight, after continued positive economic data re-established demand for riskier assets, and after Fed official Duke, reiterated that interest rates are expected to remain ultra low for some time to come.

The decline was most marked against the yen after exporter buying of yen and profit-taking on the recent dollar gains, saw the currency slip back from its highs.

EURUSD -the Euro’s recent bounce from its lows at 1.4215 last month, has seen the currency struggle just below 1.4500. Despite the gains in the past couple of days, the recent downside pressure remains intact, while below 1.4500. We may get a spill over to 1.4590, but while below this level the target of 1.3800 remains intact. A break and close above 1.4590, could trigger a move to 1.4800 and trigger stop loss buying on Euro short positions.

GBPUSD – struggled to get above 1.6240 yesterday after its rally from the December lows at 1.5830. The cable should remain stuck in this broad range between 1.6250 and the October lows at 1.5710, but with a bias to a break on the downside. Resistance at yesterday’s highs at 1.6240 and then behind that at 1.6425.

EURGBP – the Euro remains well bid predominantly on the back of sterling weakness, but is currently capped at resistance at 0.8980 area. The same recent range has dominated for the past few weeks. A break above 0.9000 re-targets 0.9070 while a break below 0.8920 re-targets the lows at 0.8830. There is also support from the October 2008 lows at 0.8850.

USDJPY – met last month’s target of 92.70, hitting 93.20 early yesterday morning in Asia. However profit-taking an yen repatriation by Japanese exporters has seen the dollar slip back. There is solid support between the 90.70 support area as well as the 91.10/20 and while this holds further upside is possible.

Sending money abroad? Converting currency? exchange rates
Forex Trading     Exchange rates     Dollar exchange rate     Pound exchange rate     Euro exchange rate
Subscribe to Forex Rate - Currency News by Email