Today’s better-than-forecast results from the US New Home Sales report has helped to reaffirm the USD’s position via its Atlantic rivals. Last week’s Existing Home Sales report came at a time when risk sentiment was in a delicate position and thus represented something different than today’s figure.
Today’s view from traders is to find something to cling onto in order to hold their USD a bit longer amid market turmoil.
After pushing beyond the 1.47 mark temporarily, the EUR/USD now appears to be correcting downward as dollar traders buy back into their positions with more force in the short-term.
The opening of the US market, which is not closed for the Easter holiday today, has also bolstered market liquidity, assisting the movement of the major currencies out of their tight ranges from last week’s thin trading.
The solidity of the greenback is on trial this week. The calls for a broad sell-off among speculators have never been stronger than these past several weeks. The S&P downgrade of their outlook for US debt is one factor fueling this vitriol; monetary policy differentials are another.
So long as the US economy continues to publish reports of solid, positive growth the USD may continue to find reasons to correct upward against its main currency rivals.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
