US Dollar has been slowly getting stronger in the Asian trades, turning up from a two session high of around 1.3800 even as European governments seemed to have agreed to help heavily indebted Greece. Traders preferred to keep their 'in dollar we trust' stance unabated as a break below the EMA 20 on the hourly charts bought some spillover gains for the greenback even as Asian equities were mostly higher.
Yesterday, the confidence in Europe's economic future rose for a 10th successive month in January. The European Commission's economic sentiment indicator rose by 2.1 points to 97.1 points across the 27-nation European Union, and hit 95.7 points (up 1.6 points) in the 16 countries that share the euro currency.
Among the largest economies, Italy and Britain -- which officially exited recession this week -- reported the biggest statistical increases in positive sentiment, of 4.2 points and 3.2 points respectively. Poland, Germany and France were narrowly up, but Spain -- the last major economy stuck in recession -- saw its level drop by minus 0.1 points.
The traders are still wary about a possible bailout for Greece, which would be the first rescue of a euro zone member in the currency's 11-year history. Such a support may have negative long-term ramifications and could have all the essential ingredients to lay the foundations for further imbalances and crisis
Meanwhile, yesterday, media reports stated that a U.S. sovereign-bond sale was part of broad retaliation measures under study by military personnel at the National Defense University and Academy of Military Sciences.
The US Dollar seems unruffled by all these proceedings and was last seen quoting at 1.3757 against the Euro, after hitting a high of 1.3742 just a while ago. The EMA 100 is around 1.3727 and may act a crucial support in case of a continued bullishness for the pair.
Wednesday, February 10, 2010
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