October 22, 2009 Analysis

Discussion in 'Trading' started by pierremarcielle, Oct 23, 2009.

  1. • The dollar pared earlier gains as the US equity market reversed earlier losses on Thursday. The Conference Board US leading economic indicators index climbed for a sixth straight month in September while the US jobless situation deteriorated slightly and US home prices unexpectedly fell. The S&P 500 index, reversing earlier losses, gained 11.51 to 1,092.91. The yen was pressured by Japan’s weak exports. Sterling was little changed on flat UK retail sales. The Australian and Canadian dollars declined modestly as commodity prices consolidated previous strong gains.
    • The EUR/USD is hovering around the 1.50 level. The eurozone current account recorded a deficit in August as exports fell. Verbal intervention for EMU policy makers will likely intensify if the EUR/USD ascent continues. The pair is in a strong uptrend but overbought. There are strong support in the 1.48 area and resistance in the 1.54. If this support is broken, the EUR/USD will turn bearish.