Today's Forex Analysis summary.
The desire for higher yielding assets led traders to buy the EUR USD Euro on Thursday. Positive economic data and signs that the U.S. economy helped drive investors out of the safety of the Dollar.
Better U.S. economic data and the steady rise in crude oil prices should continue to encourage selling pressure against the Dollar. The only strength in the Dollar we have seen this week was following the announcement that Russia would cut its purchases of U.S. Treasuries. Barring any surprises tomorrow, look for the uptrend to continue.
On the technical side, despite yesterday's weakness, the Euro could not follow-through to the downside and challenge the two Main Bottoms at 1.3804 and 1.3791. A trade through these two prices would have turned the Main Trend down.
Firmness in the metals complex and the strong uptrend in crude oil helped pressure the USD CAD on Thursday. Despite the strong influence from outside markets, comments from Bank of Canada Governor Mark Carney kept a floor on losses.
The weaker Dollar and the strong demand for commodity-based currencies helped trigger rallies in the AUD USD and NZD USD. Additional support for the New Zealand Dollar came following the announcement by the Reserve Bank of New Zealand that interest rates would stay at 2.5%. This represented confidence by the RBNZ that the economy was in a position to recover from its current recession.
Fundamentally, news that Australia lost fewer jobs than forecast helped drive the Aussie higher in addition to the increase in trader appetite for risk.
By ForexHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis
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06-11-09, 08:55 PM
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