FED ‘will act if necessary’!

Risk was put back in the market after better than expected US GDP and strong words of support from Fed Chief Bernanke at the Jackson Hole. Q2 GDP was revised lower to 1.6% vs. 2.4% initially released but was better than the 1.4% q/q expected. Fed Chief Bernanke reopened the [...]

EUR/USD
The Euro attempted a technical recovery in European trading on Wednesday with a challenge on resistance levels above 1.27 against the dollar. The currency looked to correct higher after recent sharp losses and also drew support from a stronger than expected reading for the German IFO index.  The recent Euro-zone data has continued to suggest [...]

Durable goods disappoint, QE2 on the way?

The U.S. Dollar traded weaker yesterday as US data missed expectations once again. Stock markets fell but support was found and a sharp rally was seen in the US close. July New Home Sales dropped -12.4% to 0.276m vs. 0.33m forecast and durable goods orders disappointed again with a [...]

EUR/USD
The Euro remained under downward pressure during the European session on Tuesday as a wider lack of risk appetite remained an important negative factor for the currency. Stronger than expected Euro-zone industrial orders data did not have a significant impact with markets much more concerned over the economic outlook and the currency dipped to test [...]

Buy the dollar or sell the dollar?

The Dollar was volatile yesterday with USD strength on the back of risk aversion in Europe which later reversed as US housing data weakened further. July Existing Home Sales fell 27% as the effect of the removal of the housing credit continues to be felt. On a more positive [...]