Trade Desks Looking Forward: Dollar Strength?
Trade Desks Looking Forward: Dollar Strength?
Australia releases Home Sales data at 21:30 EDT, and as a red flag release may impact not only the value of Aud/Usd but the major pairs as well. The reason that may be a bigger impact than usual is that the week is very light on economic data, and does not have equity momentum behind it.
Aside from that, the G20 meeting is at the weekend and will have trade desk attention focused on the potential Friday and Saturday headline sound-bites. All-in-all this may be a release that creates more of a move than may previously have been seen. We will update as things build momentum.
Banking Fears Unsettle Euro
Banking Fears Unsettle Euro
There has been a potentially important shift in market sentiment, at least in the short term, with the US currency gaining support from more favourable US economic data. In part, this reflects the fact that the US currency has gained support from higher yields and improving yield spreads. There will still be caution over the situation due to underlying fears over reserve diversification away from the US currency. The situation in the Baltic states will be watched closely and further pressure for currency devaluations will tend to undermine the Euro. The dollar can maintain a firm tone, but will find it difficult to make strong headway from current levels with near-term Euro support realistic in the 1.3800 region.
Ireland Downgrade Rocks Euro
Ireland Downgrade Rocks Euro
U.S. Dollar Trading (USD) continued where it left off on Friday and gained heavily against most currencies. Stocks were mixed, as were metals with Oil bouncy but copper struggling under heaving profit taking. Markets were quieter than usual with Australia away during the Asian session. Crude Oil finished down -$0.38 at $68.05. In US share markets, the Nasdaq was down 1 points or 0.03% and the Dow Jones was up 12 points or 0.15%. Looking ahead, Treasury Sec Geithner Speaks.