USD Affected by Negative Sentiment

Daily Forex Fundamentals | Written by Crown Forex | Jul 18 08 11:03 GMT |


After the greenback was starting to gain strength once again in the markets during the morning session, now it is back to falling as a result of the negative sentiment that is still in the markets due to the financial market crisis ongoing. Today the U.S economy is fundamental free as we wait for next week in order to see if there is fundamentals that will help support the weak dollar.

The Euro Zone today released its trade balance seasonally adjusted for the month of May showing that the deficit had widened to 1.5 billion from the prior surplus of 2.2 billion while expectations were 0.8 billion keeping the euro from reaching the strong resistance level of 1.5900 although it is currently appreciating in the market. The EUR/USD is currently trading at 1.5866 while recording a high of 1.5886 and a low of 1.5821.

As the UK government said this morning that the report by the Treasury official regarding borrowing in the UK was "pure speculation" scared investors away from the pound causing it to show weakness in the market. The affect of this news did not stay long as the sterling is now back to being firm in the market working its way back to the psychological barrier of 2.0000 due to the data released by the UK economy showing that the M4 money supply came in better than expected limiting losses. The GBP/USD is currently trading at 1.9972 while recording a high of 1.9995 and a low of 1.9905.

The yen is trading in a sideways pattern while it is moving on technical movements. The USD/JPY is currently trading at 106.28 while recording a high of 106.46 and a low of 105.96.

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