18th May to 22th May 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 18-05-2009
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EURUSD: The Euro fell against the USD for the first week and it now is at a record low against the JPY. The coming week promises that there will be more volatility in the EURUSD market as the economic sentiments can further deteriorate. A really bad result in America’s economic situation could deflate the domestic indices and cause a drop in the EURUSD rates. The Euro has been almost closely unchanged against the US Dollar through the past two months of trade. Previous weeks’ progress could come to a sudden end if the Euro is not capable of breaking through 1.3700 highs against US dollars. Certainly, a late-week reversal EURUSD proposes that it might continue to decline into the coming week’s open.
AUDUSD: The Australian dollar pitched a new high of 0.7716 against the dollar in the start of this week. This was because of the increase in market sentiments and a speculation that the reserve bank of Australia would cut the interest rates. This move can also weigh the changes predicted in the coming week. Since the Australian dollar rally has slowed down there could be a correction due in the coming week. Although the outlook is neutral since the speculation of the reserve bank, the market conditions will become the deciding factor. Also to be noted is that the Australian dollar ended at a weeks low since February and this could if anything signifies a reversal in rally.
GBPUSD: The British pound ended in a low against the dollar and the yen but was significantly higher than all other currencies. If we only look at the pound dollar sage, then we will be able to see that the pound has been at the same level despite the weak economic conditions of Britain. The coming week’s forecast is that it might lose its ground against the dollar because of the release of UK’s consumer price index and Bank of England’s minutes. If the CPI increases then the pound could increase and vice versa. Also if the central banks minutes suggest that it would resort to expanding quantitative easing programs then the pound could pull back.
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