The dollar normally suffers when a Democrat takes the rudder in the White House. But these are not normal times. Republicans in the U.S., as well as conservatives in Europe, are showing a Keynesian style never observed with conservative politicians, willingly now fulfilling all the dreams of Democrats in the U.S. and socialists in Europe to counter the grim economic outlook. And because it is looking equally grim on both sides of the Atlantic, we do not expect the dollar to change its generally stable stance after Mr. Obama delivers his oath today. That depends on how his administration manages its first 100 days. We heard the words, now we want to see the deeds. We shall have a first glimpse of these when the new administration’s budget proposal is presented to Congress in February.
The dollar gained considerable strength in just a few hours yesterday, reflecting bad news from stockmarkets worldwide, especially from the banking sector again. The strength continued in both late Asian and today’s early European trading, triggering more buy stops. For today’s trading, we expect some cease-fire, though, giving the market a chance to correct some of the recent quick moves. See the details below.
by George Clement
Intraday Market Outlook for Day Traders
EUR /USD
The pair continues to move into deeply oversold condition in early European trading and is currently priced at 1.2950. The ZEW came in better than expected early this morning but failed to move the euro. With the market right now consolidating its lower levels, we expect recovery moves in today’s trading, testing the upper resistance level at 1.3050.
GBP / USD
Cable’s steep fall continued in this European morning, leading to prices as low as 1.3941. Currently trading at 1.3976 in an attempt at a recovery, we expect more of that in today’s trading, regaining some of the lost territory up to a level of 1.4150.
USD / CHF
A new year’s high has been reached in early European trading, at 1.1478 against the Swiss franc, currently priced at 1.1435. Due to the heavily overbought condition for the dollar, we do not anticipate another high today, and rather see downward corrections in the cards, testing the new support zone at 1.1370.
USD / JPY
Against the yen, the dollar is in a 2-day old narrow trading range between 91.20 on the upside and 90.10 on the downside. With the market currently trading at 90.60, we expect the see-saw market to continue today between these points.
The dollar gained considerable strength in just a few hours yesterday, reflecting bad news from stockmarkets worldwide, especially from the banking sector again. The strength continued in both late Asian and today’s early European trading, triggering more buy stops. For today’s trading, we expect some cease-fire, though, giving the market a chance to correct some of the recent quick moves. See the details below.
by George Clement
Intraday Market Outlook for Day Traders
EUR /USD
The pair continues to move into deeply oversold condition in early European trading and is currently priced at 1.2950. The ZEW came in better than expected early this morning but failed to move the euro. With the market right now consolidating its lower levels, we expect recovery moves in today’s trading, testing the upper resistance level at 1.3050.
GBP / USD
Cable’s steep fall continued in this European morning, leading to prices as low as 1.3941. Currently trading at 1.3976 in an attempt at a recovery, we expect more of that in today’s trading, regaining some of the lost territory up to a level of 1.4150.
USD / CHF
A new year’s high has been reached in early European trading, at 1.1478 against the Swiss franc, currently priced at 1.1435. Due to the heavily overbought condition for the dollar, we do not anticipate another high today, and rather see downward corrections in the cards, testing the new support zone at 1.1370.
USD / JPY
Against the yen, the dollar is in a 2-day old narrow trading range between 91.20 on the upside and 90.10 on the downside. With the market currently trading at 90.60, we expect the see-saw market to continue today between these points.
