Dollar weakness pervasive
Dollar weakness across the board is the central theme in currency and oil trading midweek despite relatively stronger earnings reports from companies like Time Warner and Whirpool.
The euro continues to impress as it approached $1.40. After trading as high as $1.38626 in early Wednesday (February 2) trade, the euro currently nets $1.37854. Traders have remained stoic in their faith in European Union stability in lieu of credit worries.
The reality of economic challenges in Ireland may force traders to reconsider buying into the long-term prospects for the euro, however.
Standard & Poorâ€™s issued a lower debt rating for the country Wednesday morning, which contributed to the dip from the high mark for the euro-dollar.
The British pound is also near a turning point, according to several top forex analysts. With a current rate of $1.61647, some have put out a sell recommendation on the pair between $1.62 and $1.63.
A retest of the $1.63 retracement from a move that played out in the pound-dollar from November to December appears key.
A reversal at this point could spell a strong turnaround. A break and hold above that level could signal a longer developing upward move for the pair.
The dollar is also notably weak against the yen, with a current rate of 81.75 yen. Continued dollar weakness could spell a retest of historic lows at 80.33, and possibly a major test of the psychologically significant 80 yen mark.
Crude oil remains above $90, despite a report that US crude supplies remain higher than anticipated.
Benchmark light sweet crude scheduled for March delivery is currently at $90.48. This is off $.19 from Tuesdayâ€™s settle, and just under $2 below Mondayâ€™s close.
Gold prices are still in flux despite the pervasive weakness in the dollar. An ounce of gold is trading above the near-term low of $1,314.90, but is also well Decemberâ€™s high of $1,426.
The current rate in New York trade is $1,328.10, as speculators try to decide whether the safe money buy is still the way to go.
Currency Articles - Dec 2, 2015 11:35 - 0 Comments
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