Updated on: 18-05-2012
Dollar Clinches Magnificent Week
The dollar staged a huge crusade this week, beginning it at high points vs. the majors and ending it at even much higher points. The greenback reached multi-month highs against the EUR, the CHF and the AUD. Not bad for a currency with almost 0% interest rate.
Majors
EUR/USD
Pair reached 1.2642 low today, nearing the 1.2623 support. Should it reach this level and break it, the EUR/USD is supposed to fall apart further. The optimistic say that Greeks now are afraid to exit the EU, and therefore might reassess their stance in the June elections. Especially after they saw what was going on only because the fear that Greece would exit. By the way, the sun will still rise after the day they exit. I promise.
USD/JPY
Yesterday's US economic indicators were worse than expected, helping the pair tumble below 80.00. Negative leading indicators shows upcoming recession. Hence the drop.
USD/CHF
Pay skyrocketed as EUR/USD dived. Support lies near 0.9420, while resistance is at 0.9500.
AUD/USD
The surging US dollar carved a new low in the pair. Daily low at 0.9795 has not been seen in the market since November 2011. Analysts write that above 1.00 the AUD was overvalued against the USD, and its fall was long overdue. Some fear that the current turmoil may freeze interbank lending in the country, forcing the central bank to cut rates further.
Crosses
EUR/JPY
Daily low at 101.02. Daily high 100.21. Down 1.47%.
GBP/JPY
Daily low 124.66. Daily high 125.65. Down 1.98%.
EUR/CHF
Daily low 1.2011. Daily high at 1.2010. Down 0.02.
Commodities
GOLD
Gold rebounded from 5-1/2months low, jumping from $1527 till $1590 now. Stronger resistance seen at $1602.
SILVER
Daily high 28.90. Low at 27.83. Up 2.72%.
For more information check our Eco Calendar.
Check our Market News Section for updated real-time news.
All content is supplied by
AroundFX.com
