Tuesday, February 3, 2009

News Flash

The Fed's move was cheered by currency investors because it will help ease a dollar-funding shortage worldwide while strengthening policymakers in other countries to rescue their financial sectors. The flood of dollar supply also puts downward pressure on the value of the U.S. currency against other currencies.

"The flight to the dollar is diminished," said Matt Esteve, foreign-exchange trader at currency-trading firm Tempus Consulting Inc. in Washington.

Some strategists expect the dollar to trade in a rather narrow range ahead of the monetary policy meetings by the Bank of England and the European Central Bank on Thursday, followed by Friday's report on U.S. nonfarm payrolls.

Ron Leven, a currency strategist at Morgan Stanley in New York, said he expected the euro-dollar will be traded in a range of $1.28 and $1.32 before the end of the week, while the dollar-yen will be between Y88 and Y90.50, though he sees the dollar weakening to Y85 by the end of March.

1 comment:

MMB said...

yalorr...killed my two trades yesterday. haha