Daily Analysis
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Dollar rises as crude oil declines on low demand
Mon, Aug 25 2008, 11:38 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.491 | 111 | 1.874 | 1.12 | |
| Resistance | 1.486 | 110.65 | 1.8605 | 1.1105 |
| 1.479 | 110.3 | 1.8525 | 1.104 | |
| 1.4675 | 109.25 | 1.8385 | 1.0975 | |
| Support | 1.463 | 108.3 | 1.8305 | 1.0845 |
| 1.4615 | 108.15 | 1.817 | 1.0825 |
The dollar rose against the euro on speculation a drop in oil prices will support growth in the world's largest energy consumer. The greenback traded on a high versus the yen following the biggest decline in crude costs in more than three years. The euro fell against the yen before a survey tomorrow that may show business confidence in Germany slid to the lowest since 2005, German business confidence will discourage the European Central Bank from raising interest rates. ``Oil prices have come off the boil and that has done quite a lot to help the dollar,'' said Akio Shimizu, chief manager of foreign exchange trading at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. ``It does relieve some concern that the economic outlook will deteriorate.'' The EUR/USD is currently trading at $1.4747 as of 7:31 am, GMT.
Sales of existing houses in the U.S. probably rose in July from a 10-year low as declining prices helped stabilize demand, economists said before a report today. Record foreclosures have pushed property values down even more, luring some bargain hunters into the market. Still, tougher lending rules, rising unemployment and a glut of unsold houses signal the outlook for residential real estate remains grim. ``Housing is searching for a bottom, but we are probably not there yet,'' said Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio. ``Buyers are showing some interest because of the price declines.''
The British pound may extend its decline to $1.8300 in the next two weeks after the currency closed on Aug. 22 below so-called support at $1.8620, said Pak Lai Ng, a technical analyst at Forecast Pte Ltd. in Singapore. Momentum indicators such as the stochastic oscillator chart signal the pound may continue to weaken even as they show the currency is ``a bit oversold,'' Ng said. ``It could stay oversold for a long time.'' The GBP/USD is currently trading at $1.8458 as of 7:40am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 14:00 | Existing Home Sales | USD | Jul | 4.86M | 4 | |
| 12:00 | Holiday: Memorial Day | GBP | Aug | 1 | ||
| 6:00 | Import Price Index m/m | EUR | Jul | 1.50% | 1 | |
| 6:00 | BOJ Governor Shirakawa Speaks | JPY | Aug | 2 |
Published on Mon, Aug 25 2008, 11:41 GMT
Archive
- The Dollar gains as the markets tumble and investors seek a safe haven
Published On Fri, Jul 3 2009, 11:47 GMT - Dollar rises as the market are down and China still intends to use the greenback
Published On Thu, Jul 2 2009, 11:36 GMT - The YEN declines versus the Dollar and the Euro on Tankan Report
Published On Wed, Jul 1 2009, 11:45 GMT - Sterling rockets after good housing data and a weak Dollar
Published On Tue, Jun 30 2009, 11:30 GMT - The Dollar rises against most majors as China say the currency may still dominat
Published On Mon, Jun 29 2009, 10:33 GMT
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