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Euro Manages to Hold on to its Gains

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 22, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The EUR USD managed to hold on to its overnight gains despite bullish comments from Fed Chairman Bernanke that boosted the U.S. Dollar. Early in today’s trading session the Euro rallied sharply higher following the release of better than expected economic reports from France and Germany. The reports unexpectedly showed improvements in French manufacturing and German services. The Euro was trading firm at the New York opening but positive comments from Bernanke regarding the recovery in the global economic community helped the U.S. Dollar improve, thereby limiting gains in the Euro.

    Bernanke’s comments also helped pressure the GBP USD. The British Pound opened the New York session a little better on the bullish news out of Europe, but gains were erased after Bernanke’s comments. Fundamentally this currency pair remains weak because of the growing U.K. deficit and expansion of the Bank of England’s quantitative easing program. Traders want to see an improvement in the U.K. economy before committing to the long side.

    The USD JPY reversed early morning losses to post a gain at the close of the session. Overnight the Japanese Yen was trading higher because of the reversal of the carry trade following weakness in Asian stock markets. The surge in U.S. equity markets and the thought of an economic recovery in the U.S. encouraged traders to buy the Dollar and sell the Yen throughout today’s session. Technically this currency pair formed a closing price reversal bottom which could lead to a follow-through rally next week.

    Read full article at ForexHound.com as well as Forex Analysis, Forex Education and exclusive timely market Gann Analysis

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