US Markets off Yet USD Strong

Daily Forex Fundamentals | Written by Crown Forex | Sep 01 08 06:40 GMT |

The U.S. markets today are closed as a result of Labor Day Holiday while yet the dollar remains strong in the markets on the back of weak major currencies.

The euro weakened in the markets especially as today Germany released its retail sales for the month of July coming in at -1.5% worse than both the expected reading of -0.3% and the prior reading of -1.4%. Using the MACD we see that the direction is to the downside while the ADX indicator is showing us a sell signal. The support is at 1.4595 as the resistance resides at 1.4665. The EUR/USD is currently traded at 1.4643 while recording a high of 1.4702 and a low of 1.4615.

The royal currency lost strength in the market after Chancellor of the Exchequer Alistair Darling said that the UK is heading towards the worst slump in 60 years. Already there are anticipations in the market that the BoE might have to cut interest rates in order to help revive growth in the British economy, this further pressured the sterling to keep falling. The GBP/USD is currently traded at 1.8014 while recording a high of 1.8128 and a low of 1.8004. If the pound gathers momentum from the support of 1.7980 it will reverse to the upside resistance of 1.8120.

We currently see unwinding of carry trades as investors fear the down falls of major economies as they sell high yielding currencies and buy low yielding currencies like the yen. The USD/JPY is currently traded at 108.49 while recording a high of 108.66 while a low of 108.23. We currently see a support at 108.20 and a resistance at 109.30.

Crown Forex

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