8th June to 12th June 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 09-06-2009
Tags: 20 euros euro euro money pictures europe dollar euros
The last week’s trading saw a number of factors which caused the dollar move a lot. The US Supreme Court’s verdict on blocking the sales of Chrysler is one of the major reasons for this. Obama tries to resolve the issue as early as possible as it could harm the dollar in the upcoming week. Obama’s plan for economic recovery may create some positive notes on the American economy and the value of dollar in the coming week.
The Dollar rose against most of its major currency counterparts last week. Obama’s plan to create more job opportunities to tackle the rising unemployment issue was the reason. The EUR/USD finished the trading lower by nearly 100 pips at the 1.3886 level. The USD also had an opportunity to rise about 80 points against the CHF. At last it closed at the 1.0934 level. But when compared to pound, USD lost its ground as the British gained confidence after the conservative party doing well at the European elections. The GBP/USD finished higher at 1.6024.
Considering EUR/USD, it seems that the bearish trend may have run out of strength as the current price level has dropped the monitory pair into the over-sold territory. This indicates that the pair may float near the lower borders in the next week. A bullish correction may be imminent in the upcoming week and long term investments with crucial stop losses can be a correct strategy.
Advance Retail Sales data, University of Michigan Consumer Confidence survey results, and international Trade Balance figures may make real effect on the upcoming week’s dollar’s performance. University of Michigan Consumer Confidence and Trade Balance forecasts are relatively sanguine, but it does not seem to make a major change in the dollar value.
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