Full Description: USD strength as the Wall Street Journal talks about QE!
The Dollar Traded stronger yesterday following the close of the equity market despite the USD been on the back foot for most of the day until late in the US session. The USD strength was spurred following a Wall Street Journal Article indicating that further QE might not be as effective as the first round of QE was. This article caused profit taking and some Dollar buybacks. The market is still reacting to the change in FED stance on QE2 with its negative implications for the USD. The DJIA traded -48 points lower closing at 10812 and the S&P traded down -6 points. Looking ahead, July House Prices forecast to rise 0.4% vs. 0.1% m/m previously.
The Euro pulled back from the 1.3500 level after a topside test heading into the US session. Some negativity emerged as Moody's downgraded Anglo-Irish Bank on concerns the Irish Government has not guaranteed the struggling banks bonds. EURUSD traded with a low of 1.3424 and a high of 1.3508 before closing at 1.3460. Looking ahead, October GFK Index forecast at 4.2 vs. 4.1 previously.
Currency to watch out for: EURUSD & USDJPY
§ The EURUSD pivot point is at 1.3410 with a preference to enter into Long positions at 1.3420
§ The USDJPY pivot point is at 84.50 with a preference to enter Short positions at 84.45
Today's calendar and market movers:
§ United Kingdom GDP qq for Q2 forecasted at 1.2%
§ United Kingdom CBI distributive trades for September forecasted at 25
§ United States Case Shiller 20 mm for July expected at 0.4%
§ United States Consumer Confidence for September expected at 52.5
Equity Markets:
US equities closed negative on Friday with the S&P500 at -0.57% and the DJIA at -0.44%. The European bourses were negative with the FTSE down -0.65% the DAX and the CAC closing up -0.74% and -0.88% respectively. The NIKKEI and the HSI at the time of writing is -1.12% and -0.76% respectively.
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