FX Commentary – 09Nov

Posted: 09 Nov 2009, 8:56pm (Market (FX))


The G20 finance ministers and central bankers met over the weekend in Scotland, agreeing to keep the stimulus measures in place until the global economy strengthens. Comments from the IMF intimated that traders are probably using the dollar to fund the carry trade and it may still be overvalued.

EUR/USD range 1.4853-1.4943. Market started with move up 50 points as IMF comments and G20 talk helped Cross/JPY higher so underpinning EUR/USD. EUR/USD seemed to find good support 1.4840 with 1.4945/1.4970 the good topside resistance at the moment.

AUD/USD range 0.9195-0.9273. Supported by AUD/JPY strength and seems like still looking to test 0.9320/30 level. 00.9180/0.9090/0.9050 the major supports now.

USD/JPY range 89.70-90.23. With Nikkei in positive territory was supported by Cross/JPY being higher across the board. 90.45 and 90.85/95 topside resistance at the moment with 89.50 still support downside. Probably will be dragged around by Cross/JPY.

Another busy week on the economics front sees the release of UK trade balance figures on Tuesday, Euro zone GDP on Friday, and US trade balance on Friday.

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