It was not only the stock markets with their robust optimism for the economic future (inflation for the U.S. currency is feared, therefore the USD is tending weaker). It took the Fed’s chief Bernanke, to declare the recession in the U.S. as officially over now. That gave the dollar the rest. In the same time, Europe is far less convinced of a coming upturn for her economies, including the Eurozone, of course. This zone has been in deflation for 4 months now, with inflation below zero, far off of the ECB’s own projection of 2% inflation. That helps the euro, as it did for the Japanese yen, then in a much graver situation, admittedly, but it is somehow comparable. It surely does not help the dollar, facing a seasonally seen low 4th quarter anyway.
For today’s trading, we expect another pause in the weakness of the dollar, perhaps leading this time to somewhat more pronounced upward corrections, as explained in detail in the major pair list below. Note today’s 14:30 CET U.S. housing permits and housing starts for August.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro just took another hurdle against the dollar, the 1.4700 resistance level. Currently trading at 1.4735 this European morning, we don’t see much further strength developing today, rather some healthy downward correction to marks around 1.4620.
GBP / USD
The pound also acted more strongly against the dollar in early European trading, but in a less volatile state than the euro. Trading currently at 1.6545, it will soon bump into resistance. We therefore do not expect much more upside potential, and rather see the 1.6460 support zone tested today.
USD / CHF
Trading currently on a new low against the Swiss franc at 1.0320, the dollar is heavily oversold, although in low volatility. We expect some recovery moves setting in from here, but not exceeding the 1.0360 level.
USD / JPY
Now in very low volatility, the dollar is bumping along its support zone against the yen and is currently trading at 90.70. We see upward moves for today, on a smaller scale though, but nevertheless leading to the levels around 91.50.
For today’s trading, we expect another pause in the weakness of the dollar, perhaps leading this time to somewhat more pronounced upward corrections, as explained in detail in the major pair list below. Note today’s 14:30 CET U.S. housing permits and housing starts for August.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro just took another hurdle against the dollar, the 1.4700 resistance level. Currently trading at 1.4735 this European morning, we don’t see much further strength developing today, rather some healthy downward correction to marks around 1.4620.
GBP / USD
The pound also acted more strongly against the dollar in early European trading, but in a less volatile state than the euro. Trading currently at 1.6545, it will soon bump into resistance. We therefore do not expect much more upside potential, and rather see the 1.6460 support zone tested today.
USD / CHF
Trading currently on a new low against the Swiss franc at 1.0320, the dollar is heavily oversold, although in low volatility. We expect some recovery moves setting in from here, but not exceeding the 1.0360 level.
USD / JPY
Now in very low volatility, the dollar is bumping along its support zone against the yen and is currently trading at 90.70. We see upward moves for today, on a smaller scale though, but nevertheless leading to the levels around 91.50.
