The ECB announced that their interest rate would go unchanged at 4.00% while the BOE cut a quarter percent dropping their rate to 5.50% from 5.75%.
So what did this do for the markets? Well, the British pound weakened a bit but then returned to previous levels and then pretty much ranged from 2.025 to 2.03 all day. The EUR/USD, on the other hand, came back up from overnight lows that saw it briefly touch 1.4526. He finally settled in around the 1.4630 to 1.4650 range.
Big news expected tomorrow with the NFP. The number, if Wednesday's ADP is any indicator, may just come out a bit higher than the 75K expected.
Happy Trading!!! |
The Euro continues to dominate nearly all other pairs today, especially the dollar as we've seen the EUR/USD pair hit yet another high of 1.4857. The euro has also shown great strength against the British Pound as the EUR/GBP was at a nice high of .7214.
The strongest currency of the week thus far, though, has been the Japanese yen where we saw it with the USD/JPY hit 108.25. As the yen gains strength and the carry trade show some signs of weakness, we've seen all the yen currency pairs drop to week lows.
This week we have the US Thanksgiving holiday, where last year we saw the dollar lose a lot of value in a short time. It seems that this year we have more of the same against the euro and it will be interesting to see if it continues to fall throughout the week. I don't think anyone would be surprised to see the EUR/USD hit 1.500 before the week is done.
Happy Trading!!! |
Well, once again we closed out this past week with a lot of bullish strength in the EUR/USD. After briefly breaking through 1.45 on Wednesday, then falling nearly 100 pips the following day, the euro found renewed vitality on Friday and stormed right up past the prior high and touched 1.4528 before touching down softly to just above 1.45 before close on Friday. So where to next?
After some decent US economic number on Friday following the relatively neutral comments from the FOMC on Wednesday, the dollar was not really able to gain much strength. This points to the notion that investors still aren't convinced the worst is over. The Fed is trying to maintain a neutral bias and economists seem to be biting, with the consensus feeling, at this point, that another rate reduction is not likely in December. However, the dollar is not really making up much ground--indicating that a steady interest rate alone will not be enough to bolster the battered dollar.
Happy Trading!!! |
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