Dollar lower on inflation and deficit data
Despite higher US February trade deficit data release (USD 61.04 billion), the crosses moved down as selling picked up at technical barriers.
Analysts feel that higher deficit would weigh against the US currency in the long run. In the other release, minutes of the March 22 FOMC meet suggested that despite worries about inflation, Fed may not be very aggressive in future interest rate hikes. A lot of volatility was seen in US bond markets with prices shooting up above key technical levels. Yield on 10-year US government paper fell to 4.35%.
Outlook for the day
EUR/USD - Euro failed to cross the technical barriers despite Dollar negative data releases yesterday. Expect more volatility today (1.2875-1.3000) with another attempt at 1.3000, perhaps with greater force.
GBP/USD - GBP is again seen attempting 1.8950 level and expected to trade in 1.8875-1.8975 range.
USD/JPY - After failing yesterday, Yen would again attempt higher levels towards 107. USD/Yen pair is expected to trade in 106.75-107.75 today.
Analysts feel that higher deficit would weigh against the US currency in the long run. In the other release, minutes of the March 22 FOMC meet suggested that despite worries about inflation, Fed may not be very aggressive in future interest rate hikes. A lot of volatility was seen in US bond markets with prices shooting up above key technical levels. Yield on 10-year US government paper fell to 4.35%.
Outlook for the day
EUR/USD - Euro failed to cross the technical barriers despite Dollar negative data releases yesterday. Expect more volatility today (1.2875-1.3000) with another attempt at 1.3000, perhaps with greater force.
GBP/USD - GBP is again seen attempting 1.8950 level and expected to trade in 1.8875-1.8975 range.
USD/JPY - After failing yesterday, Yen would again attempt higher levels towards 107. USD/Yen pair is expected to trade in 106.75-107.75 today.
posted by Drs Search @ 9:26 AM
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