U.S. markets have opened with increases on Wednesday on the back of unexpectedly good new home sales data, although the happening of the session has been Dollar’s dip after Geithner’s affirmed its openness towards the plan for a new global reserve currency.
Wall street gains 2.18% after the first two hours of trading, reaching its highest level in the last two weeks, with general Electric, Bank of America and Alcoa leading the gains. The Nasdaq index adds 1.93%.
Macroeconomic indicators have beaten expectations, U.S. durable goods orders have increased unexpectedly 3.4% in Feb against market expectations of a 2.0% decline, and new Home sales rose 4.7% for the first time in seven months.
Dollar picks up from session lows
Geithner’s affirmation of being open to consider Chinese and Russian proposal to create a new global reserve currency unleashed a wild sell out fever for the dollar which lost about 200 points with the majors in a matter of minutes, although currency crosses have returned close to previous levels after he made clear its commitment to maintain the Dollar as key reserve currency.
The Euro rocketed more than150 pips jumping from below 1.3500 to maximum levels around 1.3650, to return to levels around 1.3550. At the moment the Euro seems to have found support at 1.3540 level.
GBP/USD has returned below1.4650 support the previous range , giving away most of the ground gained after Geithner’ speech. The Pound rose from about 1.4620 to an intra-day high at 1.4740. At the moment the Pound drops below exponential moving averages in the hourly chart, and above intra-day low at 1.4545.
USD/JPY dropped from 98.00 to a intra-day low at 96.90, but the pair has managed to pick up and trades above 97.35 support level towards 98.00 resistance.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment