Sinking Stocks

The US sinking stocks on Friday really hurt the Dollar and so pushed up the Euro. Fannie Mae and Freddie Mac are attempting to avoid catastrophe so the S&P 500 will be interesting viewing when the US opens this afternoon.

The Euro is in proximity to the previous high so a breakout or reversal is just round the corner. We could see a few hundred pips at least arriving in our pockets soon.

The Euro has rallied to a new high over the last two and a half months and looks set to continue but as we all know we need confirmation. The previous resistance will be a deterent for the continuation but for how long? Watch this pair as it is going to get very interesting.

Our view is the Dollar remains under pressure longer term.

Have a great trading week.

Forex Analyst
Javid Shaik