U.S. Dollar Extends Gains against Majors, While Investors Continue Unwinding

Daily Forex Fundamentals | Written by Crown Forex | Sep 04 08 14:39 GMT |

A set of data was released from all around the planet today, where the ECB and the BOE left interest rates steady at 4.25% and 5.00% respectively, while the U.S. economy as well had its share of the news, starting with the ADP employment report and ending with the ISM services report!!!

The Euro was still weak against the U.S. dollar as Mr. Trichet still held his neutral bias as the ECB decided to maintain interest rates steady at 4.25%, the Euro dropped below the critical support level at 1.4450 which provided the pair with further downside momentum to set today's low at 1.4417 after recording a high of 1.4543 earlier today.

The Pound as well was not able to gain against the U.S. dollar as the BOE decided to maintain interest rates steady at 5.00%, the Pound declined today from a high of 1.8758 breaching the 1.8700 level on the way to trade now around the 1.7760s level, the pair managed to rebound from today's low at 1.7704 which provided the pair with strong upside momentum.

The U.S. dollar however remained rather settled against the Japanese Yen with a slight tendency towards the downside as investors continued to reduce their carry trades bets, the USD/JPY pair is still trading within the 108 levels, not being able to breach the 38.2% correctional level at 107.99 nor break the 108.40 resistance level, the pair is now trading around the 108.20s level.

Crown Forex

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