Published: 18 February, 2010
written by: Nour Eldeen M. Al-Hammoury , Chief Mid. East Market Strategist
The US dollar recovers all its looses across the board as it recovers back to trade above its key resistance level at 80.00 and trade near to its 6 month high at 80.80.
As I warned before during the week reports, that all this rally in the markets will be limited and the US dollar is likely to recover back again during the week , and that exactly what happened yesterday.
The European currency dropped back again to retest its lowest level since more than 6 month at 1.3550 today during the European session, while the British pound also dropped below 1.5600 support level, the Gold yesterday topped at 1126 as we expect the top will be around 1125 USD per ounce , dropping back again and abandon more than 20 USD before the closing bell of NYSE to cose the day around 1105 USD per ounce.
Now after the markets has stabilized, we are waiting for an important economic figures from the United States, US Weekly Jobless Claims is expected to remain flat at 440 K this week , while Producer Price Index is expected to show a medium improvement to 0.8% versus 0.4% ( Revised )in addition to Philadelphia Fed Manufacturing Index is expected to show a slight improvement to 17.2 versus 15.2.
I think that the US dollar will continue with its bullish wave during the next hours more likely after NYSE lunch time, am looking for 1.3550 and 1.3500 in EURUSD and 1.5570, 1.5550 and 1.5500 in GBPUSD during the day, as for Gold am looking at 1090.
