- Friday, the FED chairman Ben Bernanke mentioned that raising the interest rates is being discussed. As soon as the economy is sufficiently strong enough the FED will be considering to hike the rates. Those statements along with the long weekend holiday in the United States encouraged investors to close positions and take some profits, giving some strength to the USD against the majors.
- Central Banks are increasingly favoring EURO and YEN as a reserve currency, thus exerting further pressure on the dollar. While the Obama administration is showing ability to tolerate a weak dollar in order to strengthen exports, global central banks are getting more and more into diversification. The dollar has been weakening against most majors since the crises began.
- Bank of England is scheduled to hold a meeting next month to discuss possible changes in interest rates. The Bank will be watching the markets from now till then, as further changes in QE and interest rates will solely depend on this.
Currency to watch out for: EURUSD & USDJPY
- · The EURUSD pivot point is at 1.4670 with a preference to enter into long positions at 1.4680
- · The USDJPY pivot point is at 90.40 with a preference to enter into short positions at 90.35
Today's calendar and market movers:
- · Today is a bank holiday in Japan, Canada and United States. As with almost every Monday, with no economic data to be released, markets will be technically driven.
- Now onto Stocks: US stocks ended positive on Friday night, with DOW up 0.8%. Hang Seng as of the time of this report was down 0.09%.