• Home ::
• Fundamental ::
• Market View ::
• FX Daily Update

• Send
• Print
• Add To
• Rss

FX Daily Update

cce0acdc-97be-43d4-8c87-f5e4df4d5ab3

6

0

Week Starts With Markets Gaining Across the Board…

Mon, Nov 10 2008, 14:45 GMT
by Lena Manousarides

FXstreet.com Independent Analyst Team

The week is starting with currencies moving in tight ranges after a very volatile week last week with. What with US elections, ECB and BOE rate decisions being the main events and also NFP which really disappointed markets after it printed -240.000.

EUR/USD is trading within 1.28-29 range so far and only a break of 1.2930 might push pair towards 1.30 again. On the downside, the level to watch is 1.2780 and if that level gives way then the pair might gave another go at 1.25 in the coming days.

Today the economic calendar had PPI out of UK which printed a really lower number and gave sterling more pressure as traders now are pricing in further cuts by the Bank of England. The fact that BOE cut rates by 150 pbs last week didn’t seem to help market sentiment and the pound and until we see some better economic data out of UK, the sentiment will remain negative. We don’t have anything else major data wise today and so traders might take it easy today amid tomorrows US National holiday which banks and markets will remain closed.

In the coming days we have quite a lot economic releases out of Europe and US and it will be interesting to see how the markets will react on the data. Asian markets were trading on a positive territory after NIKEI gained more than 400 points and European markets followed in the same tone. DOW JONES is expected to gain too today as traders seem more positive after the announcement by China regarding a new plan to help with the recent crisis. The outcome of the G20 last weekend showed all nations commitment to try and fight the global recession and the Finance Ministers will be announcing ways to do it in the coming weeks. However, there is still a lot of work to be done and it will be interesting to see how the US will try and tangle the problems with the new president taking g over.

A slow start for currencies today, with EUR/USD, GBP/USD, USD/JPY trading in very tight ranges- something we are not really used to in the last few weeks and the reason is that market participants are still trying to make sense of what happened last week and also the fact that traders are getting ready for tomorrows holiday. Let’s not forget though that at holiday times with lack of liquidity, wild moves can happen so the best way to go is to remain aside until all markets are operating normally…

Published on  Mon, Nov 10 2008, 14:46 GMT