FX Market Update 27th October 2010
Sterling has continued to outperform most of its rivals in trading today, the notable exception is the USD, which now appears to be gaining some form of momentum for a reversal on cable and the EUR/USD pair. This can be attributed to todayâ€™s durable goods orders in the worldâ€™s largest economy jumping 3.3% in September amidst expectations of just a 0.5% increase.
Risk aversion has regained its footing in the markets with global stock markets falling today. Traders are tentatively calling a reversal on EUR/USD with support at 1.36, representing the key level to signal a fundamental shift in the markets and a subsequent reversal in this pair. The Standard and Poorâ€™s 500 index has fallen 0.85% today on news that the durable goods report has indicated that the steps to be taken by the Fed to shore up the US economic recovery will be gradual.
US home sales have risen, yet still show US demand for housing is hovering at record low levels. Demand for property in both the US and the UK has been affected to a great extent by the global recession and will continue to be influenced until the labour markets improve and their respective economic recoveries get underway. At the moment it looks like it will be some time before we see any substantial movement in property prices.
The Euros position has benefited significantly from its absenteeism in the global currency war. Analysts signal that it could continue to strengthen in the short term if QE is announced from the US and the UK in the next month. Stock markets will undoubtedly gain if this is the case. Any hint that additional asset purchasing wonâ€™t happen from the FED or the BoE’s MPC and we could see the Euro come off from its highs.
Torfx Currency Dealer (01736) 335285
Currency Articles - May 22, 2019 15:21 - 0 Comments
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Sep 17, 2019 12:56 - 0 Comments
More In Gold and Oil News
Shares and Markets - May 13, 2019 11:15 - 0 Comments
More In Shares and Markets
- Share Prices Undecided on Direction as Brexit Uncertainty Continues
- FTSE / DAX Still Weak Moving Into End of Year