Monday April 5, 2010 - 18:31:36 GMT
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U.S. Dollar Remains under Pressure at Mid-Session
The U.S. Dollar opened
down and remains lower against most major currencies as traders seem to
be reassessing Fridayâ€™s employment report while brushing aside todayâ€™s
jump in ISM Non-Manufacturing and the unexpected surge in pending home
The Dollar seems to be holding its ground versus the Euro.
At the mid-session the EUR USD is slightly lower. The strength in the
U.S. economy should have been enough to weaken the Euro substantially
along with the developing lack of confidence in the Greek financial
bailout proposal. Instead, the Euro is hanging in there as it
approaches retracement zone and trend line resistance.
USD is trading better, but having trouble with a key 50% level at
1.5297. Although recent reports have shown that the U.K. economy is
growing, doubt continues to linger about the outcome of the election
and the potential hung parliament that could hamper the countryâ€™s
effort to reduce its budge deficit.
The USD CHF is trading in a
tight range as traders await direction from the Euro. Traders are
leaning a bit to the upside in anticipation of another intervention by
the Swiss National Bank.
Early Sunday night, the USD JPY surged
to its highest level since August 2009. Overbought conditions and
position squaring ahead of tomorrowâ€™s Bank of Japan meeting has put
this pair in a position to form a daily closing price reversal top.
gold and crude oil is putting pressure on the USD CAD. Strong commodity
prices and the outlook for a better economy are helping to drive this
pair toward parity. Traders are also pricing in the strong possibility
the Bank of Canada will raise interest rates before the Federal Reserve.
AUD USD is trading higher on light volume and low volatility. Traders
are awaiting the Reserve Bank of Australiaâ€™s interest rate decision on
Tuesday. Expectations are for a hike of 25 basis points. 50bp will be
bullish, unchanged will be bearish. If the market gets 25, then the
language in the statement will move the markets.
The New Zealand
Dollar is still under pressure because of last weekâ€™s International
Monetary Fund report calling the currency overvalued. Traders also fear
the high priced currency will hurt export sales and thus the chance of
an interest rate hike by the Reserve Bank of New Zealand.
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