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Forex News | Currency News by Forexlive
Busy news day Monday/early Tuesday
Oil plummets as Gustav proved less dangerous than it appeared earlier in the weekend, the PM of Japan throws in the towel and Juncker says the Euro is still overvalued. The greenback is much higher as a result, trading close to the 1.4550 level where barriers are eyed and as low as 1.7850 in cable. Throw in an Australian rate cut for good measure. New Yorkers will be grumbling tomorrow morning that all the fun was had over the weekend.
Gustav losing punch
Oil is under pressure this morning, the wires report, as Gustav loses some strength as it nears landfall. Damage should be less significant than feared earlier in the weekend, a plus for the dollar and the economy, but one that is price in at present.
Aussie rate cut, European slowdown weigh on crosses
JPY crosses have been under intense pressure as an Aussie rate cut is priced in for tomorrow and Eruopean economy growth slows to a crawl–a backward crawl– at the moment. EUR/JPY was as low as 157.50 earlier and rallies will be difficult to come by as EUR/USD edges back through 1.4600. Stops are seen below the 1.4570 level and large barrier triggers at 1.4550 and 1.4500 could come into play if they are tripped.
Darling drives cable to the brink
Darling’s comments over the weekend that the UK economy faces its worst crisis in 60 years sent cable within pips of 1.80 today. Protection of very large barriers is helping slow the decline. Another drop in home prices contributes to the crisis atmosphere. 1.7860 is next support if 1.80 gives way.
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