USD Remains Firm in NY Morning

The dollar is trading firmly with the key events of the day out of the way. The big surprise of course is the BOE decision to extend its QE, helping send sterling sharply lower, and serving as a drag on the other major currencies. ECB did nothing and said nothing new. It reinforced expectations policy is on hold for some time. US weekly intial jobless claims were a bit lower than expected, but continuing claims rose more than expected.

Short-term momentum traders are being forced by the price action itself to adjust positions. Look for more stops to be stacked be $1.4350. Support for sterling is now seen near $1.6775, a retracement objective. The greenback remains firm against the yen as well, making new highs for the week and testing last week's high just below JPY95.90. The band of resistance that may be difficult for the dollar to surmount is seen JPY96.00-25.

Tomorrow's US jobs data is the next main event. However, the ADP data may mitigate the potential impact.
USD Remains Firm in NY Morning USD Remains Firm in NY Morning Reviewed by magonomics on August 06, 2009 Rating: 5
Powered by Blogger.