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Dollar heads for gains against the Euro before consumer sentiment data
Fri, Aug 15 2008, 09:28 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.495 | 111.65 | 1.88 | 1.1105 | |
| Resistance | 1.488 | 110.65 | 1.8788 | 1.1035 |
| 1.483 | 110.4 | 1.8684 | 1.1025 | |
| 1.4615 | 109.65 | 1.852 | 1.0925 | |
| Support | 1.444 | 109.35 | 1.85 | 1.0895 |
| 1.441 | 109.05 | 1.84 | 1.0825 |
The dollar headed for a huge gain against the euro, its longest winning streak in more than two years, on speculation U.S. consumer spending will keep the world's biggest economy out of recession. ``The dollar could get a boost from positive economic data,'' said Akio Shimizu, chief manager of foreign-exchange trading at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. ``The risks of an economic slowdown seem to be greater in Europe. That increases the relative appeal of the dollar.'' The Reuters/University of Michigan index of consumer sentiment probably increased to 62 this month, from 61.2 in July, according to economists and traders. The EUR/USD is currently trading at $1.4730 as of 7:39am, GMT.
The U.K. currency is poised for a fourth weekly decline, the most since December, after Bank of England Governor Mervyn King said two days ago there was a ``chill in the economic air'' as unemployment rose in July by the most in almost 16 years. Growth is being hurt as tourism flags and tax receipts fall. ``Already this summer we are seeing the start of what we believe is going to be an aggressive move lower in yields and also the pound as the bearish developments in asset markets and the economy continue to overwhelm,'' a team led by Tom Fitzpatrick, global head of currency strategy in New York at Citigroup Global Markets Inc., wrote in an investor report yesterday. The GBP/USD is currently trading at 1.8555 as of 7:49am, GMT.
The Australian dollar fell, taking its loss from a 25-year high reached a month ago to 12 percent, as prices of commodities slid and traders bet on lower interest rates. The Australian currency posted its fourth weekly decline, the longest losing streak since October 2006, as gold, the nation's third most-valuable raw material export, slumped almost 8 percent. ``The pressure will be on the downside'' for the Australian and New Zealand dollars, said Brian Redican, senior market economist at Macquarie Group Ltd. in Sydney. ``Commodity prices have pulled down from their peaks and also their central banks are now cutting interest rates.'' The AUD/USD is currently trading at $0.8622 as of 8:10am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 13:55 | Consumer Sentiment | USD | Jul | 61.2 | 4 | |
| 13:15 | Capacity Utilization Rate | USD | Jul | 79.90% | 3 | |
| 13:15 | Industrial Production m/m | USD | Jul | 0.50% | 2 | |
| 13:00 | TIC Net Long-Term Transactions | USD | Jul | 67.0B | 4 | |
| 12:30 | Manufacturing Shipments m/m | CAD | Jul | 2.70% | 2 | |
| 12:30 | New Motor Vehical Sales m/m | CAD | Jul | 1.10% | 1 | |
| 12:30 | Empire State Business Condition Index | USD | Jul | -4.9 | 2 |
Published on Fri, Aug 15 2008, 09:33 GMT
Archive
- The Sterling tumbles as traders bet on a rate cut to 2%
Published On Tue, Dec 2 2008, 10:35 GMT - Expectations for Rate Cuts Support The Yen
Published On Mon, Dec 1 2008, 11:54 GMT - The Yen Hold Firm against the Dollar
Published On Fri, Nov 28 2008, 10:36 GMT - The Dollar is Pressured by the Rise in Equities
Published On Thu, Nov 27 2008, 11:02 GMT - Market remains skeptical despite new steps, dollar stable
Published On Wed, Nov 26 2008, 10:52 GMT
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