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Dollar near 3−month highs.

Mon, Feb 23 2009, 22:50 GMT
by James Whyte

ForexAmericas

In the news: February 23, 2009 – The talk today in the U.S. Markets has been the increase stake in Citigroup by the U.S. government. Although the equity markets are not taking this actions by the government well, the dollar has gained ground on the optimism the U.S. Government is staying proactive in stemming the recession more so than other nations. The precious metal-Gold continues to rise as investors demand for safe-haven assets increase. In today’s market Spot Gold touched the eleven month high of $992.30 an ounce. Oil settled below $39 a barrel as the U.S. equity markets continued sliding on bank fears. Although an early rally took the commodity to a high of $41.49, as news by Reuters hit the wires stating that OPEC’s February output should fall near its target for cutting production. At the end of the day the Dow Jones closed at -250.89, hitting 1997 lows.

In focus today:

Today the dollar traded near three month high versus the Japanese Yen, as the Yen devalued on the speculation the U.S. government will increase its holdings in Citigroup. The dollar index rose today to a high of 87.37 today from the open of 86.71, and gaining ground today after Friday’s dollar sell off. The pair reached a high of 94.94 in European session and has been trying to retest this level throughout the day. For now the trend is upward with resistance at 94.90/95.00 level, second resistance is not much higher coming in at 95.15/25. A breakout of this level could take it to mid November levels. Support comes in at 93.20/30 from an uptrend support line from the previous lows of February 12 and 20th.

Published on  Mon, Feb 23 2009, 22:57 GMT