Previous session overview
The dollar found favor over rivals Friday morning on news of a comprehensive U.S. government plan that could rid financial companies of their bad assets.
The dollar's latest moves are an expression of relief, saying currency analysts, after days of severe tensions across money markets on the unraveling of Wall Street. The crisis has left many foreign exchange traders at a virtual standstill, weary of U.S. assets and currencies extremely volatile.
EURUSD spiked to USD1.4300 area in current trade as euro-yen gapped higher, the euro stalling in the face of supply at USD1.4300/05 after absorbing supply ahead.
USDJPY rips to new highs for the day near JPY107.90 area as euro-yen lurches higher in current trade, the dollar overcoming supply at JPY107.60 before pausing ahead of tech resistance and offers at JPY107.95.
Friday morning in New York, the euro was at USD1.4237 from USD1.4348 late Thursday. The dollar was at JPY107.80 from JPY105.40. The euro was at JPY153.52 from JPY151.31. The U.K. pound was at USD1.8058 from USD1.8201, and the dollar was at CHF1.1221 from CHF1.1041 Thursday.
Market expectation
Analysts said that interest rates in the U.S. will stay low and another cut is possible, but fears of recession in the euro zone and receding inflation concerns will oblige the European Central Bank to cut interest rates. That will undercut the support the euro may receive as a higher-yielding currency.
Pound recovery off earlier lows of USD1.7916 extends to USD1.8080 (61.8% USD1.8178/1.7916), as rate tracks euro-dollar rally while euro-sterling rests on support at stg0.7880. Rate currently holds back around USD1.8058. Offers remain in placed near USD1.8080, a break above to open a move on toward USD1.8120. Bids now reported in place at USD1.8000.
No major data out Friday so market focus will be squarely on U.S. stocks.
Analysts still question the prospects for both the U.S. and euro-zone economies, and rising dollar sentiment is not translating to a rise in risk aversion for all currency crosses.
Most important events of the day
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