Thursday April 1, 2010 - 22:05:36 GMT
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U.S. Dollar Trading Lower Versus Most Major Currencies
The U.S. Dollar is
trading lower against most major currencies as traders take advantage
of thin market conditions ahead of tomorrowâ€™s key U.S. Non-Farm
Payrolls Report. Earlier in the session the Dollar rose slightly
following a decline in U.S. Weekly Initial Claims before being overcome
by aggressive buying of higher yielding assets. Signs that the global
economy may be recovering faster than previously thought is helping to
pressure the Dollar led by strong rallies in the British Pound and
The Euro is trading higher one day after the
main trend changed to up on the daily chart. Traders have chosen to
ignore potential problems developing in Greece over its ability to
finance its debt and instead have decided to focus on improvements in
the Euro Zone economy. The charts indicate this market is on target to
test a resistance cluster at 1.3610 to 1.3620 after regaining a 50%
level at 1.3452.
The GBP USD is surging this morning following a
better than expected U.K. manufacturing report and a positive poll
showing that the chance of a hung parliament is decreasing. Close to
the mid-session, the British Pound was testing a 50% level at 1.5297.
Overtaking this level could trigger an acceleration through the last
swing top at 1.5381, turning the main trend to up.
Euro helped trigger an acceleration to the downside through a 50% level
at 1.0513 and a swing bottom at 1.0506. The sharp break came close to
testing a .618 retracement level at 1.0423. The market stopped after
testing 1.0434 before starting a massive short-covering rally on rumors
of another intervention by the Swiss National Bank. Earlier this
morning, the Swiss Franc reached a record high versus the Euro.
demand for higher risk assets and the prospects of an economic recovery
in the U.S. helped drive the USD JPY to a new high for the year. The
market is continuing to gain at the mid-session after breaking the
January top at 93.77. The initial rally began when a story broke that
Japanese investors were putting money into foreign stock markets to
seek a better return because of the lower yields being offered in Japan.
USD CAD is accelerating to the downside after breaking through a minor
support price at 1.0152. Greater demand for riskier commodities such as
gold and crude oil is helping to pressure this pair lower. Recent
government data suggests the economy is growing, putting the currency
on track to reach parity with the U.S. Dollar.
The strong surge
in U.S. equity markets helped the AUD USD regain is bullish trend after
a one-day setback. News that the Chinese manufacturing index increased
more than expected drove up the Aussie on the prospect of greater
demand for Australian raw materials.
The NZD USD is trading
lower but making a comeback in reaction to a pick-up in demand for
higher risk assets. Earlier in the session the New Zealand Dollar
weakened in response to trader concerns that a rate hike in June by the
Reserve Bank of New Zealand may not be a sure thing.
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