Greenback's Weakness

 @ibtimes
on January 31 2008 9:00 AM

Majors are still on the rise where greenback's bearish trend is still valid. More confirmations are now within hand confirming the tough spot the US economy is in at this point. The feds easing policy seems for now working for markets as they price in the lower benchmark assuming that the Feds stance along side other legislators in the US with their fiscal package will be able to salvage deepened recession in the world's largest economy. From the 15 nation currency today inflation is still on the rise as the flash estimate confirmed pressures in the pipeline where the CPI shot the target by 0.1% and now at 3.1% way above the ECB comfort zone, complicating the situation for the bank as they maintain their hawkish positioning in their monetary policy while confidence is considered the gauge of future economic activity is still on the decline in the European nation. The euro nevertheless continued the upside wave and is still up against the dollar leaving the highest intact since the early session while sliding to set the low at $1.4818 and now its trading against the dollar around 1.4885s.Sterling pound has gathered the required momentum on the back of a weak dollar to reattempt rising above the psychological 2 dollar mark. Both economies are battling economic slowdown and are weak against majors and the battle among both major currencies is which is to be the best of the worst; for that the dollar is rather weaker than sterling's Achilles' heel, offering the pound with bullish momentum to appreciate setting as high as $1.9940 were its lowest was set at $1.9831. The Japanese yen is still weak trading sideways and stuck in the tight range as the everlasting fight between bulls and bears is ripping the pair away; the highest set today was at 106.86 while the lowest was at 106.23 and from that it is very evident how ranged the trade is on the pair.

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