Well this week it was the Fed helping push the euro currency higher against the greenback. The unexpected 50 bps cut on interest and discount rates had pushed the EUR/USD to reach record levels. And it seems that pretty much everyone is afraid of being short for an extended period of time.
The currency pair will still have its moves to the downside but there is one thing that is for sure: This market moves almost as quickly to the upside as it does to the downside!
Event risk due out of the US on Sept. 27, Thursday, could continue to weigh on the greenback, as new home sales are expected to drop and Q2 GDP is anticipated to be revised lower. If the figures are worse than expected, this could prove to be especially gloomy for the US dollar, as EUR/USD would target a break above 1.4165 to fresh highs near 1.4210. However, if the GDP revision proves to be surprisingly positive, traders may judge that the economy may be able to weather the stormy conditions of the housing recession, which could help send EUR/USD down to test 1.4030 level.(Refer to DailyFX).
Also remember this Friday is the last day of the month and the last day of the quarter. Watch for that day to be very active. Remember more opportunities means more risk.
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