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HISTORICAL DETAILS
% Change
1 Wk 0.24%
1 Month -0.63%
3 Months -2.79%
6 Months 5.24%
1 Year 10.18%
52 WEEK
High 1.4940
Low 1.2588
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.45
Q3 2011 1.43
Q4 2011 1.42
Q1 2012 1.41
DAILY DETAIL
The euro continued its rally this afternoon and reached an intraday high of $1.4453, following last night’s announcement from Washington that president Barack Obama and Senate leaders had ended their impasse and reached an agreement of a framework that will cut spending and increase the federal debt ceiling, averting the risk of an immediate default. Market sentiment experienced euphoric relief as the eleventh-hour deal increased investor appetite for risk. Nonetheless, I expect that we are likely to see a brief rally similar to that following the Greek bailout, as the agreement now needs to be passed today by the Senate, and then will move on to be voted by the House of Representatives. Risk appetite, however, could be dented today if ratings agencies suggest that the cuts are not sufficient for Washington to improve its fiscal position, even if the agreement gets passed by the House. This afternoon will likely see the US dollar being weighed on by the US debt ceiling votes, ahead of tomorrow’s US debt ceiling deadline. US ISM prices paid and manufacturing data due to be released at 3pm (London time) could also add pressure to EUR/USD trading today. This afternoon EUR/USD continues to trade higher at $1.4398. Jana Pristovsek, London
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