The Euro is rising again and may break a record against the dollar
This morning on the Asian Market, the euro reached the $1.50 although the concerns of an upcoming US recession have been solved. The dollar also felt down against most of the Asian currencies, after the decision of some players to invest in further Federal Reserve interest rate, hoping that this will avoid more significant impact from the US recession blurbs. The euro was changing hands at $1.4998 in Tokyo trade after kicking the top result off yesterday’s all-time high $1.5047.
The reason for this great boost of the Euro is the German business indicator, that predicted further collapse of the Federal reserve cut rates.
The complete article you can read on RTE.ieÂ
Yesterday’s Euro/USD loss fully recovered
Today FXstreet.com (Barcelona) reported that the drop of the Euro against the Dollar on Wednesday has stabilized after all. There is possibility of another decline today as mr. Luca, economist at Global Forex Trading predicts: “The pair should attempt another decline today. Immediate support is at 1.4640. Below 1.4615, there is further support at 1.4565.†On the way up, resistance levels, according to Luca, stand as follows: “ Initial resistance comes at 1.4730. Above 1.4765, resistance remains at 1.4800 and 1.4835.â€
This is quite optimistic prognosis, taking in mind the recent instability of the market. The Euro floats more than usual and the reason for this is most probably the pressure that is growing on the situation with Kosovo. Anyways, the situation is under control and it is not expected any dramatic changes on Thursday.
ECB rate cuts. FOREX-Euro market is going under pressure.
On Thursday, the ECB key remained at rate of 4%. The president of the company Jean-Claude Trichet suppressed the tension announcing a threat to act in prevention of the price rise and possible harm to the international economy. However, even after this information spread around the financial markets, the euro remained under pressure and it is obvious one of the biggest falls versus the dollar in one and half years. The European Central Bank hopes for cut of the interest rates may not happen at all if this tendency continues.
Most of the market players and investors preferred to take cover at least until the meeting of the seven finance officials in Tokyo. It is expected that on this meeting will be discussed the foreign exchange rates although the forex will not be in the spots of light.
We recommend to see the whole trade market review at Reuters here.