Search
Daily Analysis
0
0
The Dollar's rise not over yet says Lehman
Tue, Aug 26 2008, 10:59 GMT
by Benny Menashe
| EUR/USD | USD/JPY | USD/GBP | USD/CHF | |
| 1.486 | 111 | 1.8625 | 1.12 | |
| Resistance | 1.478 | 110.65 | 1.859 | 1.117 |
| 1.4715 | 110.3 | 1.847 | 1.1105 | |
| 1.4475 | 109 | 1.8305 | 1.0995 | |
| Support | 1.444 | 108.65 | 1.817 | 1.0925 |
| 1.442 | 108.15 | 1.809 | 1.0845 |
The euro fell for a third day against the dollar on a report today that showed business confidence in Germany slumped to a three-year low.
``There's a good chance for the euro to go lower,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``People are giving up on bets for euro gains as the chance of an ECB rate hike fades away.'' The euro also declined today versus the yen on concern credit-market losses and slowing exports will stop the European Central Bank from raising the interest rate this year. The current interest rate stands at 4.25%. The EUR/USD is currently trading at $1.4601 as if 8:18am, GMT. EUR/JPY trading at 160.51.
The dollar's rally over the past month is ``close to unprecedented'' in the 35 years since the currency was decoupled from gold and will have room to rise on bets the European Central Bank will begin cutting borrowing costs, according to Lehman Brothers Holdings Inc. ``The ECB is going to start cutting early next year -- in January,'' said Steven Englander, a currency strategist at Lehman in New York. ``Right now, the first ECB cut isn't priced in to the market until July. We are significantly more aggressive in terms of thinking how the ECB is going to respond to weaker growth and lower inflation.''
The UK pound is falling against the dollar after a report showed economic growth stagnated in the second quarter. The report added to pressure on the Bank of England to set aside concerns about inflation and cut its benchmark interest rate which is currently at 5 percent. BBA Mortgage Approvals come out slightly better than expected at 22.4K from an expected 21.1K. The GBP/USD is currently trading at $1.8390 as of 8:24am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 18:00 | FOMC Meeting Minutes | USD | Aug | 3 | ||
| 16:15 | BOC Governor Dodge Speaks | CAD | Aug | 2 | ||
| 15:00 | Consumer Confidence | USD | Jul | 51.9 | 4 | |
| 14:00 | New Home Sales | USD | Jul | 530K | 4 | |
| 14:00 | Richmond Fed Index | USD | Aug | -16 | 1 | |
| 13:00 | Composite Leading Indicators m/m | USD | Aug | -15.80% | 1 | |
| 13:00 | CPI m/m | EUR | Jul | 0.60% | 3 | |
| 8:30 | BBA Mortgage Approvals | GBP | Jul | 21.1K | 2 | |
| 8:00 | Consumption Indicator | CHF | Jul | 2.246 | 2 | |
| 8:00 | Ifo Business Climate Index | EUR | Jul | 97.5 | 4 | |
| 6:00 | Consumer Confidence | EUR | Jul | 2.1 | 3 | |
| 6:00 | GDP Annualized q/q | EUR | Jul | -0.50% | 1 | |
| 0:00 | CSPI y/y | JPY | Jul | 1.20% | 1 |
Published on Tue, Aug 26 2008, 11:37 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
Finotec
| Global financial trading center, 1 Grivas Digheni and Chrysanthou, 3035 Mylona P.O.B 58007, Limassol
http://www.finotec.com/ | support@finotec.com
Legal disclaimer and risk disclosure
FINOTEC Trading’s Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.