Tuesday, 6 Oct 2009

USD Plummets as Recession Continues to Ease

The U.S. Dollar continued to plummet in Tuesday's trading, as the global recession continued to ease, with the leading economies, such as Canada, the U.S. and Australia continuing to show improving economies. The optimism in the markets was compounded earlier today when Australia unexpectedly raised Interest Rates to 3.25% from 3%. This raised optimism in both the equity market and the forex market. As a result, in some cases the USD went bearish, as traders ditched the greenback for riskier assets. Meanwhile, the GBP plummeted as British manufacturing slid to its lowest level in 17 years.

The highest the EUR/USD cross was trading today was at the 1.4747 level, which is over 40 pips higher for the day. The GBP/USD cross is actually trading lower today, due to the negative manufacturing data from the British economy that was released earlier today. Some of the USD's weakness may continue today, if investors remain bullish in the markets. It is recommended that you follow the release of the Ivey PMI from Canada at 14:00 GMT. Additionally, you should also pay close attention to the British Nationwide Consumer Confidence figures that are set to be released at 23:01 GMT.

USD/TRY Looks to Continue Falling

After peaking at the 1.8000 level, the USD/TRY pair appears to be losing momentum. After a jumpy session for the past few weeks, it looks that a bearish trend might be impending. Point 1: a bearish cross on the Slow Stochastic indicates that a drop is imminent. Point 2: the RSI has reversed and is currently pointing down. This also suggests that the current direction of the pair is downward. Point 3: It appears that the next significant support levels are placed at the 1.4500 and the 1.3570 levels.