The fear of upcoming inflation in the U.S. with recovering economy is becoming more and more justified, assisted by data signalling an economic upswing. Present talk of unwinding government industry aid soon supported the picture of a reviving economy. Indeed, commodity, oil and freight prices are on the rise again, illustrating the same outlook worldwide. But the shape of this future economic recovery is still unclear; it could be a very slow recovery worldwide, digesting the U.S. inflation potential, especially now, with the U.S. consumer changing from a chronic spender to a saver. While we admit that the outlook for the dollar is clouded for the time being, it might be still too early to forecast a fall for the currency. For now, just the lower bands of the wellknown longer-term sideways market against many currencies are being tested. Some recovery in the USD is still overdue based on its oversold condition.
In today‘s trading, we do not expect much more downside risk for the dollar, rather assuming some upward corrections, as explained in the major pairs below. At 20:00 CET, Fed chairman Bernanke will address Boston College, with a possible influence on the market.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Another resistance point in the pair, 1.3900, has been successfully broken in early European trading, with the market currently at 1.3950. But this uptrend is so overheated (overbought) now, that downward corrections should be anticipated today, probably to the 1.3850 level.
GBP / USD
After its strength over the last days, cable is beginning to lose upward momentum in this European morning and is currently trading at 1.5830. We see more of that mood developing today, leading the market down to the 1.5690 mark.
USD / CHF
The dollar fell below the 1.1000 handle against the Swiss franc and is currently trading at 1.0910. Due to the now heavily oversold condition of the market, we expect upward corrections to levels around 1.1090 for today.
USD / JPY
The European morning market started very dull for the dollar against the yen, after it lost some territory in Asian trading. Currently priced at 94.10, we do not expect much movement in this market, only a slight recovery to 94.50.
In today‘s trading, we do not expect much more downside risk for the dollar, rather assuming some upward corrections, as explained in the major pairs below. At 20:00 CET, Fed chairman Bernanke will address Boston College, with a possible influence on the market.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Another resistance point in the pair, 1.3900, has been successfully broken in early European trading, with the market currently at 1.3950. But this uptrend is so overheated (overbought) now, that downward corrections should be anticipated today, probably to the 1.3850 level.
GBP / USD
After its strength over the last days, cable is beginning to lose upward momentum in this European morning and is currently trading at 1.5830. We see more of that mood developing today, leading the market down to the 1.5690 mark.
USD / CHF
The dollar fell below the 1.1000 handle against the Swiss franc and is currently trading at 1.0910. Due to the now heavily oversold condition of the market, we expect upward corrections to levels around 1.1090 for today.
USD / JPY
The European morning market started very dull for the dollar against the yen, after it lost some territory in Asian trading. Currently priced at 94.10, we do not expect much movement in this market, only a slight recovery to 94.50.
