Friday, 30 Oct 2009

Dollar's Recovery Begins

After the EUR/USD pair saw a - 14 months high whilst reaching the 1.50 level, the main question was what is going to happen next? If this week is any indication, then the direction seems to be quite clear - the Dollar begins to recover.

This recovery's reason appears to be more psychological than anything else. The U.S economy continues to provide mixed and unstable data. The employment condition continues to deteriorate with every publication and the housing sector is still far off where it was a year ago. Nevertheless, when a trend begins, even if it lacks the economical foundations; it provides great opportunities to gain from the situation.

As for the upcoming week, the most intriguing and influencing data for sure will be the Interest Rates announcements from the U.S, the Euro-Zone and Britain. Any change of rates will surely have a severe impact on the market, providing traders unique possibilities to make quick profits.