Tuesday April 13, 2010 - 18:21:07 GMT
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U.S. Dollar Mounting Comeback at Mid-Session in Light Trade
The U.S. Dollar is mounting a small comeback at the
mid-session after trading sideways-to-lower for most of the morning. The lack
of fresh news regarding Greece following last nightâ€™s better than expected
auction and the anticipation of tomorrowâ€™s U.S. economic data and Fed testimony
is helping to limit trading.
The Euro has been wavering from up a few to down a few most
of the New York
session. Last night Greece
concluded a successful 6-month and 52 week T-Bill auction. Demand was strong
and the bid-to-cover impressive. Interest rates were high, but better than they
were last week. Traders are now waiting for the next move by Greece. They
are either going to be satisfied with the proceeds of the auction or have to use
some of the funds available from the European Union bailout package. Investors
remain cautious about going long the Euro. Hedge funds are still selling
The GBP USD traded higher after a better than expected trade
report. The U.K.
trade data showed that the deficit narrowed substantially in February. After
the initial thrust to the upside, the British Pound settled into a range before
turning lower. Traders are becoming nervous about holding on to longs ahead of
next monthâ€™s elections. Investors are still waiting for either party to submit
a plan to reduce the budget deficit. Yesterdayâ€™s closing price reversal top has
been confirmed, indicating a downside bias.
The sideways Euro is helping to hold the USD CHF in a range
between two retracement levels at 1.0610 and 1.5068. Look for this pair to
remain range bound until the Euro makes a move. A weaker Euro will pressure the
The inability to break U.S. equity markets is lending some
support to the USD JPY but this pair is still trading lower in limited trading.
This pair is walking down a Gann angle at 93.27. If this angle fails, then look
for an acceleration to 93.67. A continuation of the downtrend could trigger a
break to 92.26.
The USD CAD is trading range bound and has been in a tight
range for several days. Oversold conditions are contributing to the low
momentum and low volatility. As long as last weekâ€™s reversal bottom at .9975
holds as support, then there is the possibility of a rally back to 1.0138.
The Australian Dollar is under pressure at the mid-session
in a follow-through break following Mondayâ€™s closing price reversal top.
Traders have decided to pare positions after Mondayâ€™s housing report should
mortgage approvals had dropped unexpectedly. This could mean the Reserve Bank
may be considering skipping an interest rate hike at its next session. The
chart indicates a move to .9194 is likely over the near-term.
The NZD USD is trading lower at the mid-session. The lack of
buyers and the lack of conviction in holding higher yielding assets are helping
to put pressure on this market.
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