USD Rebounds Off Lows

Daily Forex Fundamentals | Written by Easy Forex | May 28 09 01:27 GMT |

U.S. Dollar Trading (USD) tested new lows in the Asian and European sessions before rebounding sharply into the close of the day. US stocks sold off in the afternoon on the back of rising US Treasury Yields hurting investor sentiment in stocks and Commodities. Existing Home Sales are forecast at 4.68M vs. 4.65M forecast. Crude Oil finished up $2.20 to finish the day at $63.20 a barrel. In US share markets, the Nasdaq was down 19 points or -1.11% and the Dow Jones was down 173 points or -2.05%. Looking ahead, Weekly Jobless Claims are forecast at 630k and New Home Sales (April) are forecast at 0.36M vs. 0.356M previously. The Euro (EUR) struggled at the 1.4000 level before falling heavily in the final hours of the day on the back on rising US yields. The pair fell to 1.3850 but speculated support failed to appear and the slide continued into Thursday. Also hurting the sentiment was a FDIC report with a negative outlook on US loan quality. German CPI fell to 0.0% on a y/y basis. Overall the EUR/USD traded with a low of 1.3822 and a high of 1.3998 before closing at 1.3980. The Japanese Yen (JPY) kept to a very tight range as the USD strengthened and Yen weakened broadly together. Most of the crosses were under pressure from the rise in risk aversion although USD/JPY was very well supported on dips under 95. Overall the USDJPY traded with a low of 94.64 and a high of 95.74 before closing the day around 95.40 in the New York session. UPDATE April Retail Sales are forecast at -2.9% vs. -3.3%. The Sterling (GBP) broke comfortably back above 1.6000 the highest level since January as EUR/GBP selling and the UK mortgage industry showed signs of rebounding off November lows. The late equity pull back saw the 1.6000 handle being given up on profit taking. Further gains will require the continuing recovery of global financial system. Overall the GBP/USD traded with a low of 1.5924 and a high of 1.6089 before closing the day at 1.5970 in the New York session. The Australian Dollar (AUD) failed at 0.7900 and the late drop in US stocks prompted heavy selling/long liquidation and the pair slipped to 0.7750. Although Commodities rallied in the US, the AUD rally is starting to show signs of exhaustion. Overall the AUD/USD traded with a low of 0.7743 and a high of 0.7894 before closing the US session at 0.7780. Looking ahead, Q1 Capex forecast at -7% vs. 6% previously. Gold (XAU) continued in the recent orbit around $950 an ounce as Gold demand was countered by USD strength. Overall trading with a low of USD$943 and high of USD$960 before ending the New York session at USD$947 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products