USD to the Fall...

The dollar is continuing its fall on anticipations that the soaring oil prices will continue to pressure inflation while slowing growth in the US economy. The greenback is still negatively affected by the housing sector as today a report from Office of Federal Housing Enterprise Oversight will show housing prices are still plunging and this time fell 1.3% percent in the first quarter. As we all know that the housing crisis was behind the fall out of America due to subprime mortgages crisis as this will continue to downgrade the US dollar until they find a bottom to the housing sector.

The EU released its industrial new orders for the month of March coming in at -1.0% worse than both the expected reading of -0.5% and revised previous reading of 0.2% from 0.6%, but this had no affect on the single currency as it did not move the market. The euro is still strong versus the deteriorating greenback due to the ECB remaining hawkish and not expecting a rate cut anytime soon due to the rallying crude prices, and of course this is the best support the euro is witnessing so far. The EUR/USD is currently traded at 1.5764 while trading a high of 1.5814 and a low of 1.5743.

As for the UK it released its retail sales for the month of April showing that sales came in better at -0.2% from the previous reading of -0.4% while the predicted was -0.5%. The better than expected reading showed that consumers are not much affected by the high prices of food and energy as this helped the GBP gain grounds against the weak greenback as the pair tries to break the resistance of 1.9800 as it is currently traded at 1.9767 while recording a high of 1.9782 and a low of 1.9683.

The yen is stable against the dollar due to the greenback weakness but it is falling versus both the euro and the sterling in which we call carry trades. The USD/JPY is currently trading at 103.26 while recording a high of 103.47 and a low of 102.73.

Crown Forex

Posted in: Economy,Finance and Investment,Forex