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Forex Forum |Forex | Forex Trading | Currency Trading > FX Strategies > Trading Strategy » USD under pressure on additional QE and slower rebound
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Old 05-20-2009, 03:39 PM   #1 (permalink)
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Arrow USD under pressure on additional QE and slower rebound

The USD dollar is selling off aggressively due to the following FOMC minutes: FED: SOME OFFICIALS SAW POTENTIAL NEED TO BUY MORE ASSETS. FED FORECASTS DEEPER RECESSION IN 2009 AND SLOWER REBOUND IN 2010.

The additional QE and slower rebound has put additional pressure on the US dollar to weaken.

We have seen a flurry of activity this morning with the US dollar posting significant losses against a number of currencies. There have been a few key reasons highlighted below:

EUR/USD breaks the key resistance level at 1.3740. 1.3740 was the March 19th high prior to the US announcement of Quantitative Easing. We need EUR/USD to close above 1.3740 today to keep the positive momentum.

Interest rate differentials between the US and Euro area seem to be moving in favor of the EUR.

GBP/USD broke its 200 day MA at 1.5554, triggering stop/loss trading and carrying additional momentum to support the EUR/USD move

USD/CAD breaks key psychological support at 1.1500…there is a lot of room that CAD could move (at least technically). Oil and Natural Gas are both higher today as well, helping support the C$ rally.

Private Borrowing Costs in the US are coming lower…banks are supplying more lending which means there is less need to hoard US dollars as access to credit markets are opening. We have seen an enormous amount of debt issuance this past week for investment grade corporates and it is feeding down to the consumer levels now as well.
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Old 07-01-2011, 10:35 AM   #2 (permalink)
 
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Old 08-01-2011, 10:21 AM   #7 (permalink)
 
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