By Forex Yard – After making strong gains against the USD, among others, the EUR now seems to be facing sell pressure as the opening of the US markets draw near. Initially receiving a boost from the surge of risk appetite following well performing Asian equities, such as the Nikkei 225, riskier currencies like the EUR, CHF, AUD, and NZD now seem to be leveling off.
The EUR/USD pair has fallen from 1.3400 this morning towards 1.3295 a few hours after the European markets opened. Asian traders dumping their safe-havens in exchange for riskier currencies has changed the dynamic in the forex market so far today, but with little market news this impact is difficult to determine in light of other fundamentals. Analysts are beginning to point to a possible retracement of the EUR/USD, saying that a valid target may be near 1.3440 in the short-term.
In other news, the Canadian Dollar (CAD) appears to have sustained its growth and is steadily holding its ground above parity with its American counterpart, the US Dollar. The Loonie has gained from an above average performance of its economy as well as rising crude oil prices, which are always a boon to the North American economy. With the USD experiencing mixed price behavior from likewise mixed economic reports, the USD/CAD pair may remain below parity for some time.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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