4th May to 8th May 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 04-05-2009
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Euro is currently trading at 1.3334 USD. But it has a support at 1.3125 Fibonacci support. Last week the euro currency witnessed a bullish trend when its rate rose against most of the major currencies of the world. Its currency rivals were shocked at such a sudden momentum of euro currency.
Hitting one week high, euro climbed above 13300 above dollar and near 0.9100 against pound sterling. The major reason for such bullish trend is said to be the high PMI number’s of the regional economy that has resulted in such a strong movement. With this news strong signs of euro currency stabilizing in the near future and a bullish market trend are expected by the traders.
With such strong fundamentals and recovery, it is good news for the euro zone. Traders are expecting to look downwards correcting the position of euro this week.
Moreover the European Central Bank (ECB) is expected to further lower the interest rates by 25 basis points to a record rate of 1.00% later this week. The governing council is also expected to put floor on the overnight lending rate which would lead to long term expectations of the traders of higher borrowing cost which would benefit the currency.
But here the policymakers have to act on a common ground. In case they fail, the currency will suffer a major downturn and will face the worst kind of economic recession.
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