Negative US fundamental data moved EUR/USD with 80 pips.



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Article content Negative US fundamental data moved EUR/USD with 80 pips.

27.03.2007 11:12 Tuesday

03.27 3:57 ET - Negative US fundamental data moved EUR/USD with 80 pips.
The fundamental data turn the starting to recover dollar again into loser on the market. After the release of US new home sales at level of 848K while the forecast was 995K the dollar lose over 80 pips of it value against the euro. The dollar is in high risk to turn down at levels above 1.34 if today’s Consumer Confidence data is also negative from the expectations. The forecast remain that the euro/dollar trading will up to 1.35 even and high in the coming few weeks.

03.23 10:31 ET - The EUR/USD is close to the current support level.
The dollar makes not significant recovery against the euro today. The dollar was support today by better than expecting US Existing Home Sales. The forecast was for 6.35M, while the release of the data was 6.69M. One of the major concerns of the Fed and traders was the negative results in the US housing sector. As overall for today the dollar made recovery of 15/20 pips against the euro. The dollar is close to the current support level of 1.3288 and the break below should push the dollar to levels of 1.3240/45. On the other side with the start with Monday trading the dollar will lose much of the gains and will back at levels above 1.34.

03.22 6:44 ET - The yen remain under pressure.
In spite the negative serial of news for the dollar the yen is much more weaker in the recent hours. After the Japan public holiday the yen recovery of about 50 pips against the dollar mainly after the Fed decision for the interest rate politic. The last two hours of trading during the European session the yen remain under pressure as lose from 117.24 to levels of 117.72. The yen will not use the moment against the weak dollar and will generate new losses to the end of the week. The World-Signals forecast is trading at levels above 118 to the end of the week. For the coming week the yen should recovery temporary to levels of 116.90/117.20 and move down to 120 levels again.

03.21 15:35 ET - Fed leave the interest rates unchanged at 5.25%.
After the Fed decision to leave the interest rates unchanged the traders widely sell dollars. The Fed is not ready to cut the interest rates while the traders expecting Fed to hint for rate cut in the coming months. The main factors that will affect to the further Fed decisions are the US inflation and US economic growth. In the coming days we expect to see the euro/dollar trading at high levels close to 1.35. It seems that nothing will stop the dollar except the key resistance that form at 1.3485. We recommend opening long EUR/USD positions with target 1.3485.

03.21 11:03 ET - Dollar little strong ahead FOMC today.
The dollar made little rise against the euro expecting the key Fed statement later today. The dollar was traded at 1.3323 after the end of US session yesterday and fall to 1.3288 during the beginning of morning US session today. The investors expecting to hear growing concerns in the US economy and interest rate cut further this year. It is widely expecting at 14:15 today Eastern Time Fed to leave the interest rates unchanged.

03.21 2:45 ET - - Japan Market in holiday.
The yen during the Asian session remain flat at levels of 117.20/30. The reason was the public holiday in Japan. Also the traders look for fresh news that will be released by FOMC policy announcement today. The expectations are Fed to leave the interest rates unchanged at 5.25% but to signal that if is necessary Fed will cut the interest rates. The market already generates this effect. The US inflation remains under control, but the economic growth and the latest date especially in the consumer sector worries the traders.

03.20 7:12 ET - Worries for the US economic push the dollar low.
The trading today is based on speculations ahead US Housing Starts and Building Permits. Also the traders speculate what will do the Fed with the interest rates tomorrow when at 14:15 ET is schedule the FOMC policy announcement. The expectations are Fed to leave the interest rate unchanged and to signal for rate cut in the coming 1-2 months. The worries for the US economy growth continue to dominant and that will cause new rumors for rate cut in the world biggest economy. The dollar will remain weak and in the coming 1-2 weeks will target the levels of 1.35.