Monday 28th April 2008

The USD had a very solid week last week and it will be interesting to see if those gains can be held this week as markets absorb a plethora of US economic news and a Fed interest rate decision (Wednesday).

In early trading this morning the US currency has risen to a 2 month high against the Yen boosted by the growing view that the Fed may stop cutting rates this week. Japan begins a series of daily holidays this Tuesday as it celebrates 'Golden week'. Strange observation from French economy minister Christine Lagarde on Sunday who claimed the difference between EZ interest rates and US interest rates is too big and called for a change in rate policy on one side of the Atlantic or the other. Anyhow this recent dollar rally has given the model some further profits and with all the news and views due this week it may well be wise to lock some in.