Chris Lee | forex

Forex Market Updates 25th August

Aug 24th 2010 at 10:46 PM

The Euro (1.2660), which had fallen to a low of 1.2587 just before the US session began, shot up to 1.2681 after the bad US Existing Home Sales data, as people possibly questioned the wisdom of buying the Dollar. The Pound (1.5437) also shot up, from 1.5372 to 1.5481.

 The Swiss Franc (1.0301) also strengthened, from 1.0451 to 1.0286. The Swiss Franc remains strong this morning, but the Euro has ceded some of its gains.

The Pound has dropped a little more. Despite the unattractiveness of the US as an investment destination, the Dollar is being bought for "cash" purposes. Overall, the Dollar Index (83.31) is expected to rise towards 86-87 in the coming weeks.

 The Aussie (0.8865) has recovered a bit from yesterday's low of 0.8796, but remains bearish overall for a possible fall towards 0.87.

Remember that US Dollar Index is inversely proportional to stock prices. A stronger US dollar index is bearish for stocks.

Have a great week trading!!

Cheers!!

Chris Lee Your friendly trader

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