US Pressures Continue

Daily Forex Fundamentals | Written by Investica | Nov 24 08 12:13 GMT |

Despite some defensive support, the dollar will remain at risk as the severe US deterioration focuses attention on a huge financing requirement. In data reported on Friday, the US ECRI leading growth index weakened to the lowest level for 15 years and the downturn in the index was at the fastest pace on record. This trend will reinforce fears that the economy has deteriorated rapidly over the past few weeks. There will be expectations of a sharp fourth-quarter GDP contraction and a very poor payroll report for December. Underlying fears over the economy unsettled Wall Street initially, especially with further stresses within the banking sector and downbeat comments from the Federal Reserve officials. The Euro recovered to around 1.2550 as Wall Street looked to rally in late trade with a report that New York Fed chief Geithner would be nominated as Obama's Treasury Secretary. The Euro pushed stronger again on Monday as the US currency was generally weaker following a US$306bn support package for Citigroup which will risk further stresses on the US budget position. Investica http://www.investica.co.uk Disclaimer: Investica's market analysis is not investment advice and must not be taken as recommending particular market positions. Investica can take no responsibility for any actions taken by investors.