« Trading EUR / AUD - Sellers Stopped Cold? | Home | EUR »
Is the Euro Headed to 1.50?
By DailyFX Updates | November 7, 2007
Here is our latest special report:
Since the middle of August, being long Euros and short US dollars has one of the best trades in the currency market. In less than 3 months, the EUR/USD climbed from a low of 1.3361 to a high of 1.4731 this morning. Critical resistance levels have been broken on a near daily basis and now that the currency pair is trading well above the psychologically significant level of 1.45, it will be clear sailing up to 1.50.
Dollar Bearish News: As If It Couldn’t Get Worse
There are many reasons why the US dollar has been weakening and they ultimately center on interest rates. Over the past 12 months, the US Federal Reserve is the only central bank to lower interest rates, even the BoJ raised rates back in February. Therefore it is not a coincidence that the latest burst upwards in the EUR/USD began when the Federal Reserve surprised the market with a discount rate cut to 5.75 percent on August 17.
noneTopics: DailyFX.com Updates |