Thread: Forex Analysis - 28/08/2008 : USD traders are looking ahead to more conclusive news

The Greenback suffered another day of whipsaw today failing to extend recent ranges in thin trade. For the most part, USD traders are looking ahead to more conclusive news due overnight and tomorrow from both our trading partners and here in the US. After failing at highs overnight, the USD managed to recover and try for new highs in most pairs but failing to reach into the zones of reported stops to the upside while traders watched for news on other markets; such as oil and equities. Oil prices managed to whip EURO around making new lows for the US session but failing to reach into real money interest under the 1.4600 handle; overnight lows continued to remain unchallenged in US trade. Holding the 1.4700 area into the close is encouraging to the bulls but the big news will be US GDP tomorrow; traders are looking for a revision upwards but likely will wait for a test of the 1.4600 handle before making a move. GBP continued under pressure with EURO for most of the session moving under the 1.8400 handle to test the low 1.8300’s but volumes are thin traders say. A brief look under the 1.8300 area for a low print at 1.8283 was enough for stops to be triggered but the rate is back in the 1.8330 area into the close suggesting that bids are there but light so far. USD/JPY failed to rally and hold the 110.00 handle again for the 7th day in a row suggesting that offers remain thick at the highs; trades note that tonight’s Japan data may encourage more volatility. Swissy rallied again into the 1.1000 handle but failed late in the day suggesting that offers are thick in that pair also. Aggressive traders can sell above the 1.0980 area for a break lower to end the week. USD/CAD rallied as well but again was unable to attract bids and remained mired in the 1.0400 handle under the zone of offers said to extend into the 1.0530 area for now. In my view, today was just another day of two-way action with the exception of the GBP; look for the USD to fail again overnight and test the bottom of the range ahead of US data in the morning.



Analysis Provided by: Forexpros.com - Written by Jason Van Jankovsky