Wednesday, September 10, 2008
REVIEW: 9 September 2008
The bullish progress of the U.S. dollar (USD) was stopped today as the U.S. stock markets gave back all of their gains from yesterday, and then some. Looking at the state of Lehman Brothers, the credit crisis appears to be in full swing still. Plus, we saw that the Pending Home Sales numbers dropped by 3.2 percent---just another reminder that the U.S. housing mess is far from reaching a bottom.
However, with all of that bearish sentiment, the USD was still able to hold its ground pretty well against the British pound (GBP), the euro (EUR) and the Swiss franc (CHF). The one major currency that was able to truly capitalize on the USD weakness was the Japanese yen (JPY).
PREVIEW: 10 September 2008
The pullback on the U.S. dollar (USD) will most likely continue tomorrow. I don't see it losing too much value, but it appears there are a few bearish flags forming on the hourly charts for the EUR/USD and the GBP/USD, and I am anticipating that the currency pairs will remain in those patterns for a little while longer. Ultimately, I think the USD is going to come out on top, but we will have to wait for a confirmed break down through support.
Here is/are the economic announcement(s) you need to keep a close eye on tomorrow:
- GBP Trade Balance
**** source PFXGlobal