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[Fxgreece team]

Further Dollar Weakness Ahead?
Another day another dollar weakness all across the board, with EUR/USD finally breaking the important 1.39 level and moving its way up toward 1.40. The question is where will it stop? Well, there are not a lot of positive things for the greenback at the moment as we are approaching the end of the week, what with oil climbing to new record highs just above $80 and fears of slowing in the US economy getting stronger by the hour.
Yesterday we didn’t have any important economic news coming out of the US, so traders were reluctant to commit either way, nevertheless we saw euro in a buy mode during the whole day. The only important economic indicator is tomorrow’s US retail sales which market players await in order to see the damage spilling to the consumer sector.
As the time comes near the FED meeting, there is a mountain of speculation as to what will happen that day with the majority of analysts almost certain that Fed will cut rates by as much as 50 points. Last Fridays weak payroll data in combination with fears of credit crisis continuing in the short term, gives plenty of reasons for investors to continue the uptrend in the EUR/USD. The dollar is being sold all across the board no matter what the situation is and that is likely to continue until EUR/USD finds a temporary top near or above the 1.40 level. There are a lot of talks of protecting barriers around those levels, but all that can change easily if further demand for the European currency exists.
Today we don’t have any important news releases so the Euro bulls will try to test new highs against the dollar maybe even 1.3950.
Question is now, how will ECB react to levels above 1.40? In the past they said that they feel comfortable within the recent 1.35-1.38 levels, but anything above 1.40 might trigger some reactions, since such strong euro will eventually hurt the European economy. However, if inflation persists in the euro area, Trichet and his friends might find it hard to decide what the next move will be as recent comments left room for more hikes to come…
Also, be aware of EUR/GBP levels as the pair staged an impressive rally these days, re visiting .6870- last seen in May. The pair found it very difficult to break this level in the past but the recent strength in the euro might make this possible, targeting .6950.

[pinalli]

As the news reported by my dealer FINEXO that the Federal Reserve published a report, which reflects a weak growth of the U.S economy during April and May.
This is largely due to a reduced consumer spending, and the manufacturers' choice of more economic raw materials.
Among the 12 regional Fed banks, only 3 of them reported a mild growth, while the rest reported almost no growth and even a slightly weakening economy.
This report concurs with the statement made by the Chairman of the Federal Reserve, B. Bernanke, as the economy is now at a turning point -
The weakening of the economy has come to a halt, and a gradual rise can now be expected…..Read more (http://www.finexo.com/)

The impact of statement issued by Ben Bernanke is thus now showing result that the dollar reached its highest point in three months against the yen, as a way to battle inflation and also rose against other currencies.

[pinalli]

Yesterday the dollar kept its one-month peak against the major currencies due to better-than-expected U.S. consumer confidence and a steep oil drop. Stocks were also supported on Tuesday as Merrill Lynch's write-down and selling of shares gave investors hope that the end of the credit crisis is near, thus giving support to the dollar.

I believe that the dollar could rise even further if more economic data continues to top expectations thus soothing U.S recession fears. They still await data from the ADP national employment survey due later today in order to reevaluate U.S. jobs data due on Friday.

Finexo calender show the upcoming ADP national employment survey and reevaluate U.S. jobs data due on Friday will gradually change the pessimistic views of the dollar, and perhaps investors would be encouraged to buy the dollar again, according to me.

Regards

[fdrago2]

Intervention? Whe are Blind?I note with great concern the manipulation of the FED and others in this market. I also see that the data do not fit macroeconomics from month to month. The United States is in recession and frankly I see that are intervening the market for the USD did not get off, so this is a fictitious economy. How to intervet the market?. Just observe the quantity of gold reserves that were directly buying and make the oil alight. It is being prepare for any confrontation?

[fdrago2]

As commented. This intervention and assistance from the Central Banks to help FED will cost them an eye of the face .... The ECB and the BOE have been the rope to the neck .. I leave the translated link. See

http://www.libertaddigital.com/notic...276337377.html

http://www.libertaddigital.com//econ...ar-1276337269/

http://www.libertaddigital.com//econ...es-1276336739/

Use http://translate.google.com/translate_t?hl=es#

[pinalli]

US banks are tightening their lending policies. Consumer credits in the US fall in July to $4.6 billion (vs. survey $8.5B and a revised $11B in June). Consumer spending, which 2/3 of US GDP, will be under increased pressure.

[jeff15]

EURO has created the greater level consolidation and created the downfall as predicted from 1.3721 to 1.3556 areas yesterday.
Today the trading range meanwhile Japanese session is 1.3526 to 1.3600.
Euro is predicted to create a rapid fall and recovery move below the low during the early European session and then swing and firm up during mid European.

[davidfresh]

Hello,
just read through your analysis on EURO. Mind sharing what trading system you use to generate your forecast.
davidfrsh

[money_maker]

Despite the recent weakness, gold has rallied over the last few months, hitting a series of all-time highs in November, as traders bet the U.S. dollar will remain weak for a long time.

A weaker greenback tends to support prices for commodities like gold that are priced in dollars around the world.

But investors began to reconsider the outlook for the dollar on Friday following a much better-than-expected report on the U.S. labor market.

"When the market sees signs of strength in the economy, it interprets it as giving room for Fed to raise rates and support the dollar," Foster said.

The Federal Reserve has slashed interest rates to historic lows near zero percent to help bring about an economic recovery. As a result, the U.S. dollar has depreciated significantly against rival currencies this year.

Fed officials have repeatedly said that interest rates will remain low for an extended period as the economy slowly recovers. On Monday, Fed Chairman Ben Bernanke said the recovery continues to face "formidable headwinds" and reiterated that inflation is not a deep concern.