Majors Lose Strength

Daily Forex Fundamentals | Written by Crown Forex | Feb 27 09 07:57 GMT |

The U.S. economy is going to release its GDP fourth quarter preliminary reading in which expectations show the recession will deepen to contract by 5.4 percent from the advanced shrinkage of 3.8 percent. Yesterday the dollar rose as a result of President Barack Obama spreading optimism throughout the markets as he proposes a budget for nearly $750 billion as a way to stabilize the financial industry, due to this we see the dollar rising versus major currencies. The euro is falling in the markets on worries that the financial crisis will deepen in Europe therefore prompting the European Central Bank (ECB) to lower interest rates as a way to ease the effects of recession and stimulate economic growth. As a result of these speculations the euro is pressured to the downside as the EUR/USD is currently trading at 1.2708 while recording a high of 1.2749 and a low of 1.2688. We currently see the pair heading for the support of 1.2690 while there is a resistance at 1.2745. The pound is following the euro's trend as we see it like the single currency sliding against the federal currency since investors are buying the dollar after the positive sentiment Obama spread yesterday. The UK economy lacks major economic data that will support the pound to rise in the markets as currently the GBP/USD is traded at 1.4238 while recording a high of 1.4306 and a low of 1.4235. The pair is approaching the support of 1.4225 while the momentum indicators provide us with a downside direction. The yen is rising versus the dollar marking the most climb in two weeks as the technical indicators showed that the plunge of the yen was too extreme lately. Also today the Japanese currency got support on anticipations that exporters brought back their profits as the month comes near the end. The USD/JPY is currently trading at 97.87 while recording a high of 98.35 and a low of 97.31. 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.