Most of the currencies were appreciated against the USD and to some extent against the EURO. But important one to look in was Swiss FRANC. Swiss FRANC went to record level against the EURO and also against USD. Japanese YEN and AUD were also impressive. In case of some of the Asian currencies growth outlook and rate hikes have an effect on it, as new flows are coming in these high rate areas.
EURO’s move was ok, as I said in last day that it will move around 1.40-1.44. but I do thing that now time has come for EURO to prove the pattern which it formed, last two day’s closing gave indication of that. Let see what happens in coming days.
As I said in last day that USD may drop but it has a good support at 73.5 level. It’s higher resistance is at 76 level and it will break the bearish pattern if it goes above this level. But if the pattern is true then it will drop more in coming days.
Swiss FRANC drop more this week, as many are taking shelter under it. Last few days AUD closed lower from it’s
but it’s last day move was better. Like Swiss FRAN, Japanese YEN is also in same position, also some better news from high point makes it an alternative. Japan
Unless some solution comes from US about the debt problem, USD will react like this in coming days if not more. On the other hand European debt infection, especially the contagion one is really a problem for them. So other currencies will react like this with these two currencies. Hope politicians will contribute better for their country and for world as a whole.
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