Hello Koala King and folks.
Good day to you!
Last week, the risk atmosphere caused the growth in high-yield currencies and the weakening of the US Dollar. This was so despite the fact that investors were still concerned about Europe, including the strike to protest low wages in Romania.
Today due to the occasion of Easter, most banks are closed and trading volume is low.
The fact that the US Non-Farm Payroll NFP finally became positive and it was the best for the past three years suggests that we may expect a stronger US Dollar this week. Today the service sector ISM index is projected to be of a good news as well and hence a rise of the US Dollar against the Euro is not unexpected.
Regardless of the positive news, i believe that the climb the US Dollar has been experiencing is also due to the American economy being in a “better” shape than other countries, including Europe. Currently the US economy has been relatively stable.
US Dollar assets now are apparently safer and have better returns than other currencies.
From a technical point of view as the price is below the trend line on the daily, we may continue to see a falling EUR/USD. Should the price break the trend line on the daily however this may suggest a possible trend change and hence we may consider being bullish on the EUR/USD.
One interesting point about the Canadian dollar, it is equal to the US Dollar and this is also because of improved economic growth worldwide and increasing commodity and equities prices.
Have a good time.
Masoud is a businessman and a Senior Koala
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