Greenback Still Strong in the Markets

Daily Forex Fundamentals | Written by Crown Forex | Jul 23 08 10:45 GMT |

The greenback gained in the markets as Henry Paulson is supporting the financial markets by trying to restore confidence once again like before and while Plosser president of the Federal Reserve Bank of Philadelphia thinks interest rate should be hiked in order to battle inflation. As these talks filled the markets of Paulson passing a bill to support Freddie Mac and Fannie Mae the government sponsored enterprises, traders gained confidence in the dollar. The Euro Zone released their industrial new orders for the month of May coming in at -3.5% worse than the prior revised of 2.0% from 2.5%. As result of the release of this news supported the euro from not rising versus the greenback while it continuing to depreciate in the markets. Today the resistance for the single currency is at 1.5800 while the EUR/USD is currently trading at 1.5731 recording a high of 1.5797 and a low of 1.5717. Although the euro is weak but the British pound remained vigorous holding its ground against the dollar supported by the BoE minutes released today showing that the MPC was more concerned with inflation. There is a strong support at 1.9905 while sterling tries to work its way up to the psychological barrier of 2.000. The GBP/USD is currently trading at 1.9955 while recording a high of 1.9960 and a low of 1.9902. The yen is still trading in an overbought area using the stochastic oscillators above the support level of 107.45 while the USD/JPY is currently trading at 107.86. The pair recorded a high of 107.87 and a low of 107.16. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.