Impact of this Week's Forex Market on Next Week's Forex Session

Saturday, May 15, 2010

Although, the outlook for the US Dollar index remains bullish this week instead it is expected from dollar that it will attract the investors in the next week's Forex session. This is because the investors loose their confidence on the currency pair of USDGBP. This comes as the favor to the dollar for the next Forex opening session said by the market experts.

In the recent week it is seen that the economic data is playing mess with the euro and it is assumed that it will remain in loss in the opening market of the coming week. Where as GBP may be on rimple in the next week's opening because of the CPI data and April retail sales since there is a pressure of equities high correlation continues on GBP and there is neither an opening path for the GBP from the grab of Sterling which is the bullish currency of this week.

Now a quick overview of the Forex online market currencies ups and down of this week. The G10 currencies Vs GBP position,shows some establishment in the market due to the positive reaction given by government on the Greece aid-package matter but not Vs euro currency. There is a fall shown by USDGBP below 1.45. The currency pair of USDJPY shows a high this week and were the best performers of the week in the G10. The major currency of the Forex market that is EUR/USD falls below 1.25 and expected this week to touch the low of 1.234 that is the low of October 2008.

US prime mortgages along with subside commodity prices will make the equities to resume their decline and makes the USD and JPY the best performing currencies of the recent week. Economic data remains in the sideshow in the market that is BoE makes the interest rate of Banks to be snugged at 0.50 percent and APF continues to EURO 200 bin. The government announced the cutting of budget this recent week threatens the people and therefore the inflation quarterly report warns the investors about the downside risks can show upgrades in the market.

Now about the market outlook of the recent week, the reports says that- in this risk averse moment in the Forex market the USDJPY shows the best performance. US Dollars are continuously attracting the buyers in the recent week because of the fall of EUR/GBP. British pound and sterling has shown the fall this week which ultimately favors the USD growth. It is expected in the next term that because of the rise in US dollar and subside oil prices will in turns makes the consumer prices low down.

The USD shows a safe flow in the economy chart reaches to the 86.0 level, although there is a strong support is given by the overseas interest rate of US refunding embedded high demands for the dollars. This also helps the market in viewing their medium-term approach may be reach to the high of 89.6 high of the March 2009. The snugged resistance is shown at 86.76 in the USD.

EUR currency remains in their downtrend this week regardless of the Greece aid-package details that favors to the debt crisis facing countries belong to the euro zone are Greek, Spain and Portuguese. The austerity package finally gets the approval this week which in turn provides a flip in single currency and equities. EUR/USD currency pair has showed on and off this week and were supposed to touch low of 1.234.

This week is beneficial for the currency pair of USD/GBP because of the UK elections, this helps the pair to reach high of 0.8620. The BoE not make any favor for the GBP against other currencies in G10, it only creates a resistance line for the euro currency so that it can snugged to the place where it is.

There will be a relief expected in the next week's forex session because of the three major targets that is maturing of Greek 10y debt package, Ecofin meeting along with the buying of ECB bonds. For the investors, it is only be said that "When there is a will, there is a way". Hope for well!!!

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Vuhelp May 16, 2010 at 1:23 AM  

Nice article. God bless you.

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