Today was the start of what will be a busy week for US data releases. U.S. retail sales rose 1.4% in October surpassing expectations of a 0.9% rise and motor vehicles and parts rose 7.4%
Excluding gasoline, autos and building materials, retail sales rose 0.5%, which makes this a third consecutive month of gains.
These figures support the opinion that the US economy is going to continue with its recovery during Q4. In order to support the ongoing economic recovery and support the labour markets, the Fed are likely to maintain rates around 0.00%-0.25% for some time to come.
So what does this mean for the US Dollar? Well today Bernanke made comments that supported a strong dollar which did give some initial signs of boost during intraday trading sessions however this was short lived and there was some downside pressure on the dollar.
Looking here at the USDJPY we broke through previous support levels and made new lows. From a technical perspective we are trading below the 50 and 200 day Simple Moving Average. There is some support around the 88.31 level; if we break through that then further downside can be expected. A failure to close below that level may prompt signs of a reversal….
Today was the start of what will be a busy week for US data releases. U.S. retail sales rose 1.4% in October surpassing expectations of a 0.9% rise and motor vehicles and parts rose 7.4%. Excluding gasoline, autos and building materials, retail sales rose 0.5%, which makes this a third consecutive month of gains.
These figures support the opinion that the US economy is going to continue with its recovery during Q4. In order to support the ongoing economic recovery and support the labour markets, the Fed are likely to maintain rates around 0.00%-0.25% for some time to come.
So what does this mean for the US Dollar? Well today Bernanke made comments that supported a strong dollar which did give some initial signs of boost during intraday trading sessions however this was short lived and there was some downside pressure on the dollar for the remainder of the session.
Looking here at the USDJPY from a technical perspective we are trading below the 50 and 200 day Simple Moving Averages, we broke through previous support levels and made new lows for the day; for the moment the downside prevails. There is some support around the 88.31 level; if we break through that then further downside can be expected. We will wait to see if we can hold this support level; a failure to close below this support may prompt signs of a reversal….
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on Monday, November 16th, 2009 at 11:00 pm and is filed under Fundamental Analysis, Market Outlook, Technical Analysis.
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Interesting, did you plan to continue this article?
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