By TraderVox.com
Tradervox.com (Dublin) – The euro was the major beneficiary last week, increasing to eight-month high against the dollar on European Central Bank bond-buying plan and poor US data which sparked speculation of QE3. Will this continue through this week? Here is an analysis of major pairs this week.
EUR/USD: the pair had a positive week last week, starting the week at 1.2624 and dropping lower only to make a spirited comeback to touch 1.2814. There is an emergence of an uptrend support indicating that the pair may remain high this week. Further advance is unlike and the pair is projected to remain within range.
GBP/USD: the pair started the week at 1.5865 dropped down to 1.5850. The pair then rebounded with a spirited fight to close the 1.60 line to 1.6034. The pair retreated to close the week at 1.6007. Strong data from the UK are pushing the pound, and the gains are supported by speculations the BOE will not add stimulus. Speculation of QE3 and the FOMC meeting will probably keep the pair high as the dollar weakens.
USD/JPY: the pair started the week with a rise but speculations of a third round of quantitative easing and poor labor department report sent the pair down as the yen strengthened to close the week at 78.25. The pair will remain within range with few attempts upwards this week as the market waits for the FOMC decision.
USD/CHF: the pair started the week at 0.9550 and climbed to a high of 0.9583. As speculation of QE3 in US mounted, the pair dropped to a low of 0.9433 but pared some of the loss to close the week at 0.9438. With a quiet week ahead, the pair is expected to remain neutral with attempts downward prior to the FOMC meeting.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox