Market Heading Towards Dollar Safety
Market Heading Towards Dollar Safety
Overall, the currency market opens having most of the majors heading lower, as investors bought dollars. The recent international conflicts might have sparked a rally towards even more safety, empowering the dollar bulls. Ahead, the market is expected to move on a relative robust volume, despite the weak release calendar.
The Euro (Eur/Usd) is testing the 1.3850 level, the area where the pair bottomed on Thursday and Friday. The same support area also represents the 38.2% retrace of the euro bullish trend that lasted from November to mid December. Later this month, the ECB is expected to reduce the interest rate by 50 basis points.
The Week of Usd Hedging
The Week of Usd Hedging
The major pairs The first full week of trade in 2009 gets underway with a huge set of economic releases to come, from all regions, and the Sunday/Monday start belies what is to come on Tuesday through Friday; this really may be the calm before a perfect storm in regard to Usd and Jpy valuations. The U.S. economy was the first to signal that major swings were in place from expansion to contraction, and got from the top to the bottom of the cycle in a matter of 18 months, historically a very quick period of time to get from the peak to the trough of the American business cycle. The speed of the reversal from July 2007 seems to have taken the global markets by surprise somehow, and now we are seeing Forex valuations on the major pairs working off the slide in economic growth globally as the impact of the U.S. based credit crisis works its way through the fabric of global trade.
Markets Rally On The First Day Of 2009
Markets Rally On The First Day Of 2009
U.S. Dollar Trading (USD) started the year higher in a surprising move given the large rally in stocks and Oil. Economic data showed another contraction in US manufacturing with the December ISM slumping to 32.4 vs. 36.2 previously. In U.S. share markets, the NASDAQ was up 55 points (3.50%) and the Dow Jones was up 258 points (2.94%). Crude Oil closed up $1.74 ending the New York session at $46.34 per barrel. Looking ahead, November Construction Spending is forecast at -1.3% vs. -1.2% previously.