EUR/USDUSD/JPYGBP/USDUSD/CHF
1.491111.752.0871.1275
Resistance1.487111.32.08551.1205
1.486110.552.08451.1195
1.4775109.552.07551.109
Support1.471109.152.07251.107
1.467108.752.06551.1025

The dollar lost gains vs. euro and cut gains against other currencies yesterday as comments from a Federal Reserve official and a key economic report affirmed expectations for further rate cuts. However, the dollar posted steep gains against the yen, buoyed by sharp gains in the stock market, with investors wading back into riskier trades.

Fed Vice Chairman Donald Kohn said renewed financial market turmoil could slow the U.S. economy more abruptly than thought, signaling a willingness to cut U.S. interest rates further. His comments were consistent with the Fed's "Beige Book" report, which said the U.S. economy from October to mid-November grew at a slower pace than in the previous period. The report, an anecdotal summary of economic conditions nationwide, also said U.S. housing demand was "quite depressed".

The greenback had surrendered some of the session's earlier gains after government data showing new orders for long-lasting U.S.-made goods dropped for a third month in October, with companies appearing wary about making new investments.

Most analysts believe the dollar could further decline given the weak tone in U.S. economic data and the trickle of bad news from financial companies hit by the credit crunch.

The Fed is widely expected to cut interest rates by a quarter percentage point in December to 4.25 percent and again next year to stem economic fallout from the housing debacle. The reduction in rates has eroded the dollar's yield appeal.

Today there is two major data that can give us good direction where the U.S currency is pointing. The first data is the GDP q/q annualized that will be released at 13:30 GMT, according to positive analysts forecast; the data can support the green back. The second data from U.S is the new home sales which will be released at 15:00 GMT.

Pie chart


Today's Economic Events

DateEventCountryPeriodPrevious ForecastSignificance
00:30 GMTPrivate New Capital Expenditure q/qAUDQuarterly6.30%2.20%2
02:00 GMTBusiness ConfidenceNZD12.92
08:55 GMTUnemployment RateEURNov8.70%8.70%2
09:30 GMTMortgage ApprovalsGBPOct102K96K2
09:30 GMTNet Lending to Individuals m/mGBPOct9.804B10.0B2
11:00 GMTCBI Distributive Trades RealizedGBPNov102
13:30 GMTGDP Annualized q/qUSDQuarterly3.90%4.50%3
13:30 GMTGDP DeflatorUSDQuarterly0.70%0.80%2
13:30 GMTUnemployment ClaimsUSDWeekly2
13:30 GMTCurrent AccountCADQuarterly8.4B3.5B2
13:30 GMTIPPI m/mCADOct-0.90%-0.60%2
15:00 GMTNew Home SalesUSDOct0.77M0.75M3
23:15 GMTManufacturing PMIJPYNov49.549.52
23:30 GMTCore CPI y/yJPYOct-0.10%0.00%2
23:30 GMTCore Tokyo CPI y/yJPYNov0.00%0.10%2
23:30 GMTUnemployment ClaimsJPYOct42