• Home ::
• Fundamental ::
• Market View ::
• Daily Forex Overview

• Send
• Print
• Add To
• Rss

0ac6a20d-012b-4f8c-93c4-4b64e1349486

0

0

Daily Forex Overview

Tue, Jul 8 2008, 07:41 GMT
by Raivis Zile

Dukascopy Swiss FX Group

Previous session overview

On Monday, the dollar declined against the euro after a sudden drop in U.S. stock markets spooked currency investors and convinced them to take profits from last week's rise in the greenback.

Concerns over the euro zone economy intensified Monday after Germany reported a 2.4% fall in industrial production in May, sharply weaker than an expected 0.5% rise, and the third drop in a row.

The Euro touched day lows as oil was sold off from last weeks record highs and ECB President Trichet reiterated his "no bias" on rates comments. EURUSD traded with a low of 1.5612 and a high of 1.5754 before closing the day at 1.5725.

Pound closed in NY at USD1.9767, having been pressured to highs in this session of USD1.9790, from lows of USD1.9649, on a reversal of dollar fortunes following comments from Fed Yellen about problems in housing market and banking sector that could get worse before economy improves, and a Lehman report suggesting Fannie Mae and Freddie Mac may need to raise more capital.

The Japanese Yen was well offered during the Asian and European sessions as equities gained on falling oil. USDJPY traded with a low of 106.62 and a high of 107.75 before closing the day around 107.20.

The Australian dollar was weaker late Tuesday as a spike in risk aversion weighed on the high-yielding currency in the face of more negative news from equities markets.

Market expectation

Cable bids seen placed toward USD1.9700 with further interest noted toward USD1.9680. Offers noted at USD1.9750/60, stronger at USD1.9790/00.

Traders saying that JPY crosses may extend losses as Europe investors expected to sell on view downturn in Asia equity markets will spill to Europe.

FX players shrug off G8 leaders' statement expressing strong concern about rising oil and food prices. Players now believe the overall world economy and inflation will remain unchanged. Falls in Asian stocks as opposed to G8 statement are pushing the dollar and the euro lower against the yen.

The Australian dollar is poised to remain within limited ranges in the lead up to crucial employment data due Thursday, although some risks lie to the downside.

Most important events of the day

Published on  Tue, Jul 8 2008, 07:42 GMT