Source: ForexYard
USD
The USD has gone increasingly volatile as of late against its major currency pairs. The USD/JPY cross is down for a second day at 96.42. This comes about as the U.S. shows some negative economic data for a second day in a row. Against the EUR, the USD is currently down by 30 pips at 1.3827. Versus the Pound, the USD has recorded ups and downs in the past week, and is down over 150 pips against the GBP at 1.6414. The main reason for the weak USD in recent weeks is due to the U.S. economy showing instability, such as today’s negative U.S. PPI data. The USD’s bearishness is likely to continue into end of week trading, providing that the U.S. economy continues to show mixed signs of economic recovery.
CAD
In the past week the Australian Dollar has recorded very positive results. This comes about as Canada is showing signs that an early economic recovery is very near. This comes about as Canada produced a string of positive economic figures on Monday and today, such as positive Manufacturing Sales and Labor Productivity figures. In turn, Canada’s positive data has led to a bearish CAD in the past week. The CAD has slipped against the USD and EUR since the beginning of last week. This trend is likely to continue if Canada’s economy produces more positive economic news. Thus traders will sell the CAD for higher-yielding assets. Therefore, it is likely that the CAD will go bearish yet again this week, and the USD/CAD rate may reach 1.1400 by Friday.
Forex Market Analysis provided by ForexYard.
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