The Dollar
weakened for today as investors and traders look for higher yielding assets. In
other words, risk appetite has risen and commodity currencies like the
Australian, the New Zealand, and the Canadian Dollar have gotten the best part
of it. The drop on the greenback has been attributed to profit taking and a
needed correction on the US Dollar, due to the fact that it has been too
over-extended to the upside.
On the
other hand, the Euro could continue going lower after the current consolidation
if there are no new fundamentals supporting the Single Currency. Tomorrow’s
inflation report out of Germany is critical, because it could provide the
European Central Bank with an excuse to implement more economic stimulus.
All we have to do is wait and see what the effect of tomorrow's report will be.
ReplyDeleteToday I think we will see the good movement.
ReplyDeleteCongratulations for the post, very helpful.
ReplyDeletethe USD cannot push the price anymore against the major currencies
ReplyDeleteIf the inflation figure of Germany come out disappointing, the Euro will not be able to hold it's ground.
ReplyDelete