Defiantly ignoring the negative prognostications of the vast majority of currency strategists and commentators, the dollar has recorded a modest appreciation of 1.5% since the Fed announced unbounded QE four weeks ago. Numerous explanations help to account for the surprise rise in the greenback – the economy has been stronger than expected, the jobs environment looks perkier as many major American retailers announce plans to hire thousands of temporary workers, Europe and Asia still look vulnerable and risk appetite has been somewhat defensive. Also, a number of major American companies have been repatriating ahead of fiscal year-end and traders are very short dollars, expecting the greenback to struggle as the year-end fiscal cliff approaches. The dollar index achieved a four-week high today and now looks poised to test resistance up around 80.80 in the short term. Right now, it probably pays not to underestimate the buck.
Daily Forex Brief
Making cents of the dollar
Michael joined FxPro in May 2010 having been previously at Deutsche Bank, Rothschild and Schroders. He is a multi-discipline investment and market strategist/economist with extensive expertise in FX, strategic and tactical asset allocation, fixed income, equities, property and alternative assets.
Chart EUR/USD Update: EUR seems perched here not far off 1.3000
Gold ETF Sales Dwarfed By Central Bank, Jewellery, Coin and Bar Demand
GoldCore Gold Bullion
Calls and Signals: Traders Helping Traders
Japan stocks rebound from overnight collapse as yen-sellers resurface
EUR bounced from 1.2822 to 1.2957
Westpac Institutional Bank
Legal disclaimer and risk disclosure
FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.