THE NEWS TRIBUNE Published: December 25th, 2007 01:00 AM
T he British pound hit record lows against the euro on Monday for the second straight day, weighed down by falling home prices and expectations that the Bank of England will keep cutting interest rates. The euro rose to 72.710 British pence, compared with the earlier record of 72.350 pence from May 27, 2003. The Bank of England cut its key interest rate a quarter-point to 5.5 percent earlier this month amid fears the fallout from the U.S. subprime crisis would hurt economic growth. The pound also drifted lower against the dollar, to $1.9760 from $1.9828.
Source: thenewstribune.com
Tuesday, December 25, 2007
Dollar May Rise to 115.70 Yen on Technical Charts, MUFG Says
By Kosuke Goto
Dec. 25 (Bloomberg) -- The dollar may strengthen to a two- month high of 115.70 yen in a few weeks, said Masashi Hashimoto, a currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd., citing technical charts.
Resistance at around 115.70 yen represents a 50 percent retracement of the dollar's decline from its June 22 high of 124.13 to its Nov. 26 low of 107.23, according to a series of numbers known as the Fibonacci sequence. The U.S. currency is poised to gain after it rose above the upper side of clouds on the so-called Ichimoku chart, which stayed at 113.53 today. Resistance is a level where sell orders may be clustered.
``The dollar's uptrend is very firm technically,'' said Hashimoto at Bank of Tokyo-Mitsubishi UFJ, a unit of Japan's largest publicly listed lender. ``It will likely challenge higher levels in the coming few weeks.''
The dollar traded at 114.28 yen at 7:45 a.m. in London from 114.29 in New York yesterday, when it advanced to 114.49, the strongest since Nov. 7.
Other Fibonacci levels include 23.6 percent, 38.2 percent and 76.4 percent. A break of one indicates a currency may move to the next. A failure suggests a trend may stall.
An Ichimoku chart analyzes the midpoints of historic highs and lows. A cloud, used to identify levels of support where traders expect buying, or resistance where they expect selling, is the area between the first and second leading span lines.
Moving Averages
The dollar is also likely to rise after it broke through its 65-day and 90-day moving averages. The dollar has risen above the 65-day moving average, which stayed at 113.28 yen today, since Dec. 14. It also climbed above the 90-day moving average today, which stayed at 113.83 yen, signaling the dollar is likely to remain strong in the medium term.
Traders typically look for evidence of a currency's short- term trend by viewing the five-day moving average, and aim to forecast two- to three-week trends with the 21-day moving average and a three-month trend with 65-day and 90-day moving averages. They use moving averages to identify levels of support, where buying is expected, or resistance, where selling is forecast to take place.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
Source: bloomberg.com
Dec. 25 (Bloomberg) -- The dollar may strengthen to a two- month high of 115.70 yen in a few weeks, said Masashi Hashimoto, a currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd., citing technical charts.
Resistance at around 115.70 yen represents a 50 percent retracement of the dollar's decline from its June 22 high of 124.13 to its Nov. 26 low of 107.23, according to a series of numbers known as the Fibonacci sequence. The U.S. currency is poised to gain after it rose above the upper side of clouds on the so-called Ichimoku chart, which stayed at 113.53 today. Resistance is a level where sell orders may be clustered.
``The dollar's uptrend is very firm technically,'' said Hashimoto at Bank of Tokyo-Mitsubishi UFJ, a unit of Japan's largest publicly listed lender. ``It will likely challenge higher levels in the coming few weeks.''
The dollar traded at 114.28 yen at 7:45 a.m. in London from 114.29 in New York yesterday, when it advanced to 114.49, the strongest since Nov. 7.
Other Fibonacci levels include 23.6 percent, 38.2 percent and 76.4 percent. A break of one indicates a currency may move to the next. A failure suggests a trend may stall.
An Ichimoku chart analyzes the midpoints of historic highs and lows. A cloud, used to identify levels of support where traders expect buying, or resistance where they expect selling, is the area between the first and second leading span lines.
Moving Averages
The dollar is also likely to rise after it broke through its 65-day and 90-day moving averages. The dollar has risen above the 65-day moving average, which stayed at 113.28 yen today, since Dec. 14. It also climbed above the 90-day moving average today, which stayed at 113.83 yen, signaling the dollar is likely to remain strong in the medium term.
Traders typically look for evidence of a currency's short- term trend by viewing the five-day moving average, and aim to forecast two- to three-week trends with the 21-day moving average and a three-month trend with 65-day and 90-day moving averages. They use moving averages to identify levels of support, where buying is expected, or resistance, where selling is forecast to take place.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
Source: bloomberg.com
Euro hits fresh record
Source ::: AFP
london • The euro gained on the dollar and struck a fresh record against the pound here yesterday on a market largely deserted by traders heading for holiday destinations.
The London currency market will be closed on Tuesday. The single European currency in late-day deals was at $1.4405 against 1.4378 late Friday in New York.
The euro shot to a new record against the pound, hitting 72.89 pence, the euro's best showing since its creation in 1999. The dollar was meanwhile trading at 114.36 yen, up from 114.09 on Friday.
There has been "very little movement ... but the euro has managed to move into the black," said Peter Stoneham at Thomson IFR Markets as the euro edged up against the dollar during the day.
“The thin holiday conditions have been exacerbated by the lack of fresh factors for the market to trade off. Corporate activity has leant some direction with patchy euro demand out of Europe," he said.
From: thepeninsulaqatar.com
london • The euro gained on the dollar and struck a fresh record against the pound here yesterday on a market largely deserted by traders heading for holiday destinations.
The London currency market will be closed on Tuesday. The single European currency in late-day deals was at $1.4405 against 1.4378 late Friday in New York.
The euro shot to a new record against the pound, hitting 72.89 pence, the euro's best showing since its creation in 1999. The dollar was meanwhile trading at 114.36 yen, up from 114.09 on Friday.
There has been "very little movement ... but the euro has managed to move into the black," said Peter Stoneham at Thomson IFR Markets as the euro edged up against the dollar during the day.
“The thin holiday conditions have been exacerbated by the lack of fresh factors for the market to trade off. Corporate activity has leant some direction with patchy euro demand out of Europe," he said.
From: thepeninsulaqatar.com
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