USD Moves Up against Rivals
Posted on 20. Apr, 2009 by admin in USD Analysis, USD Economic Analysis, USD News
After ending last week slightly higher versus most of its currency counterparts, the USD began this week’s trading with a continuation of its recent uptrend, appreciating against every currency rival except the JPY. Dropping below the 1.3000 level against the EUR this morning, and near 1.4700 against the Pound, the Dollar’s strength appears to be on schedule for further upward movement against these majors.
The only pair to beat out the USD this morning has been the Japanese Yen, considering many traders are beginning to hedge their bets on the value of the Dollar as the number one safe-haven investment. This may come as a result of the perception that the Dollar may see weakness in the future as investors pull out of the forex market and back into the stock market due to increased risk appetite and uncertainty in various equity markets. As the future decisions of the European Central Bank (ECB) appear to be foggy, traders are not expecting much correction to take place in the EUR/USD’s recent downward movement and are instead going short on the EUR where possible.
Last week, traders saw a flurry of economic news affecting the American economy and practically zero news emanating from Europe. This week appears to be the exact opposite. A blizzard of economic events is expected from the Euro-Zone and very little is scheduled to be released from the United States. Forex traders should definitely pay closer attention to the EUR and GBP markets this week as they will be in the driver’s seat of the market for the days ahead.
