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Forex Report, September 19 2007 |
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So the Fed played its hand yesterday and adjusted the Fed funds rate to 4.75%. The stock market was beside it itself as the Dow jumped over 300 points while the NASDAQ jumped 2.7%. Unfortunately, oil and gold also spiked, and the dollar dumped some value as well. All in a day's work for the Fed.
Upon news of the rate cut, EUR/USD jumped about 100 pips finally hitting a high of about 1.3987 before slipping slightly. It remains in the range between 1.3950 and 1.3985 currently, but pressure has been to the upside in morning trading.
The GBP responded similarly yesterday, but has since lost nearly all of its gains. The EUR/GBP is at record highs, trading around .6990.
It should be an interesting week and EUR/USD will probably test 1.4000 before its done, perhaps today.
Happy Trading!!!
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Forex Report