👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Dollar continues its advance after buoyant US data

Published 10/27/2010, 10:41 AM
Updated 10/27/2010, 10:44 AM

The greenback continued its rebound for the second day, hovering around one-week high versus the euro, following the news that showed improvement in durable goods and new home sales.

Durable goods climbed to 3.3% in September compared with the revised -1.0%, surpassing estimates of 2.0%, wile new home sales climbed to 307 thousands in September from 288 thousands and forecasts of 300 thousands.

Perhaps the upbeat data may lower pressure on the Fed officials who are setting for another quantitative easing round when they meet on November 2-3.

The dollar index, which tracks the dollar movements against six major currencies, jumped to a high of 78.13 after the breach of resistance at 77.80 while it opened the day at 77.63.

On the side of the coin, the euro, which constitutes the majority of the dollar index, retreated on some concerns after Heinken and SAP's third-quarter earnings missed analyst's forecasts, driving European shares to negative territories.

Today, Europe lacked key economic fundamentals ahead of the release of confidence and unemployment data later in the week.

Concerning the euro-dollar pair, it plummeted to a low of 1.3769 as the daily closing below strong support at 1.3890 yesterday paved the way for the pair to move further to the downside.

Meanwhile, the pair is trading at 1.3788 after touching a high of 1.3878, whereas the trading range for today is among the key support at 1.3630 and the key resistance at 1.3920.

Moving to the royal pair, it failed to continue its two-day rally as the dollar's rebound pared the pound's advance yesterday when it gained following the better than estimated third-quarter growth figures.

The previous day, growth data showed that the British economy expanded 0.8% in the 3Q compared with 1.2% in the second quarter, higher than median forecasts of 0.4%.

The pair has recorded a low of 1.5756 and a high of 1.5864 so far, while it is currently trading at 1.5805.

The trading range for today is among the key support at 1.5645 and the key resistance at 1.5880.

With regard to the dollar-yen pair, it managed to continue its rise for the second day to halt the strong downside trend that started since May, gaining support from momentum indicators which are giving a bullish sign on the weekly charts.

Currently, the pair is trading at 81.67 after touching a high of 81.98 and a low of 81.29, while the trading range for today is among the key support at 80.00 and the key resistance at 83.00.

 

 

 

 

 

 

 

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.