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Forex Report, November 3 2007 |
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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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Forex Report