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Dow trades at 6 year lows.

Fri, Feb 20 2009, 01:33 GMT
by James Whyte

ForexAmericas


Markets for February 19, 2009 by James Whyte  

In the news: February-19 Today the U.S. stock markets were unable to maintain stability and it sent the Dow to a six year low (7,447.53). Closing at 7,465.95 (-89.68) the Dow was led lower by the financials, including Bank of America and Citigroup which both fell 14% in today’s trading. Bank of America, the U.S. biggest bank lost 64 cents per share bringing it to a 24 year low, and not far behind was Citigroup losing 40 cents per share to end the day at a 17 year low of $2.51. Overnight the European markets did not do as bad as the U.S. markets did, but it is noted that Governments world wide are stepping up to hinder the worst global downturn.

EUR/USD:

Today the Euro found great support and it rebounded from near 3 month lows. The Euro gained ground versus the majors on speculation the German Chancellor Angela Merkel signaled Europe’s largest economy plans to assist in easing the financial distress in Europe. Today the Euro traded at a high of 1.2759 after the Philly Fed Manufacturing Index was released, coming in a -41.3 from a -24.1 forecast. It clearly showed a contraction in manufacturing in the U.S. mid-Atlantic region. The next resistance level for the Eur/Usd comes in at 1.2785/95 level. To the downside it should find some support at 1.2580/90 level.

EUR


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