Thursday, 1 Oct 2009

USD Gains on Poor U.S Economic Data

Poor economic data from the U.S as well as statements by U.S and E.U central banks officials helped push the Dollar up against most of its major currency counterparts in today's trading .The Dollar rose Thursday after Federal Reserve Chairman Ben Bernanke said there was no immediate risk to the greenback's status as a reserve currency, while European Union officials signaled discomfort with the Euro's recent rise.

A big push to the Dollar also came from a disappointing U.S manufacturing index result as well as an unexpected rise in first time unemployment claims. The dour reports pressured the stock market and boosted the Dollar's safe haven appeal. The ISM Manufacturing Index fell to 52.6 in September compared with 52.9 in August, and a much lower number than the anticipated 54 by economists. Unemployment Claims jumped to 551K from 534K; this release comes a head of the highly anticipated Labor Department's September employment report due to be released tomorrow at 12:30 GMT.

USD/MXN Downward Correction Imminent

A bearish correction may be imminent for the USD/MXN. A breach of the upper Bollinger band is evident on the 4 hour chart, with the RSI floating in the oversold territory. Furthermore a bearish cross is evident on the MACD chart as well as an impending bearish cross on the Slow Stochastic chart.