USD Remains Strong

Daily Forex Fundamentals | Written by Crown Forex | Jul 24 08 10:54 GMT |

Finally the bill that was passed by U.S Treasury Secretary Henry Paulson was approved that Mr. Paulson can support Fannie Mae and Freddie Mac financially as he believes that this will help regain confidence of Americans. Obviously as investors see that the financial markets are starting to become supported, they gain faith in the dollar causing it to remain appreciating in the markets while they also enter the equities market. The euro is weak versus the gaining greenback as business sentiment in Germany falls while the current account seasonally adjusted for the month of May came in showing that the deficit had widened to 7.3 billion from the prior -0.3 billion as a result of soaring prices of energy products. The EUR/USD is currently trading in an oversold area on a daily basis using the stochastic oscillators at 1.5687 while recording a high of 1.5707 and a low of 1.5637. The British economy released their retail sales for the month of June coming in at -3.9% worse than the revised prior reading of 3.6% from 3.5% while expectations were at -2.6%. The release of the data deteriorated the sterling as investors continue to lose confidence in the economy as they see it falling. The GBP/USD reached a support at 1.9862 and struggled to breach it while reversing the trend and currently trading at 1.9883 while recording a high of 1.9988 and a low of 1.9832. The yen is still trading in an overbought area at 107.62 while currently in the markets there is seen unwinding of carry trades as investors sell high yielding currencies and buy low yielding currencies like the yen. The USD/JPY recorded a high of 107.97 and a low of 107.57. 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.