Federal Currency is Surging

Daily Forex Fundamentals | Written by Crown Forex | Feb 20 09 08:05 GMT |

The dollar once again has the stage as it is rising in the markets as Obama's economic team is doing as much as they can to stabilize the financial and money markets to ease the effects of the global recession. Also the dollar is climbing in the markets as major currencies are pressured from the unwinding of carry trades in the markets while the U.S. economy is going to release its CPI data showing that inflation pressures have eased their plummet. The euro is facing its deepest weekly decline in a month versus the dollar on anticipations that the ECB Chairman Jean-Claude Trichet will hint for an interest rate cut as a way to stimulate economic growth and this weighed on the single currency. The EU Zone today is scheduled to release its manufacturing and service sector in which expectations show will slightly incline yet remain contracting. The EUR/USD is currently trading at 1.2595 while recording a high of 1.2665 and a low of 1.2575 as the daily charts show us that the pair is trading close to an oversold area, so if the pair gains enough momentum from the support of 1.2563 to rise the resistance of 1.2603. The United Kingdom today is scheduled to release its retail sales while expectations for both the monthly and yearly reading will show a decline as consumption is curtailed from the frozen credit conditions. As investors are pessimistic by the upcoming data that will be released while they sell the pound at the same time the royal currency is pressured from the unwinding of carry trades in the markets. The GBP/USD is currently trading at 1.4205 while recording a high of 1.4278 and a low of 1.4203. For the pair we currently see a support at 1.4170 and a resistance at 1.4265. In the markets we are seeing unwinding of carry trades as investors sell higher yielding assets and buy lower yielding assets which increases the appeal of the yen in the markets. The USD/JPY is currently trading at 94.16 while recording a high of 94.22 and a low of 93.96, the yen resumes its decline against the dollar for the fourth week which marked the longest streak since December 2007. 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.