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Euro Pokes Through 1.5000 Without Much Fanfare

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Oct 21, 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 finally poked through the psychological 1.5000 barrier after several attempts failed earlier in the week. Traders took the “toe in the water” approach as this priced was reached because of the fear of a major seller up above. Traders have been reluctant to buy the Euro at current levels because they fear a verbal intervention by the European Central Bank. Earlier in the week, the ECB expressed concerns about the rise in the Euro and its possible detrimental effects on Euro Zone exports. The price level is not the problem with this currency; it is excessive volatility that ECB officials are worried about.

    The GBP USD opened higher and accelerated to the upside as demand for higher yielding assets rose. The initial move in the British Pound was triggered by positive news from the minutes of the Bank of England’s last meeting. The minutes showed that the BoE members were unanimous in their decision to keep the asset buyback program at current levels. Many traders see this as a sign the program is working and that additional stimulus may not be necessary.

    The USD JPY was positive today. No real news came out to affect this currency pair. This pair has been in a range for a few weeks. Conflicting comments recently from Japanese Finance Minister Fujii have traders a little confused at this time. Fujii doesn’t mind a higher Yen as long it is based on sound fundamentals. His main concern is excessive speculation and volatility.

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

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