Daily FX Wrap Up

With Christmas and the New Years holiday rapidly approaching, many traders are trying to get a few more trades off before the end of the year. As everyone is well aware, the US Dollar recently reached multi-year lows verse the majors, so the question is, “Will the US Dollar continue to decline in the New Year?” A quick review of recent past fundamental news indicates that further declines are quite possible. With Japan’s Bank Minister being extremely optimistic about future growth, coupled with the belief that the US is at the beginning stages of an economic decline, it seems more than believable. In addition, the Euro is replacing the US Dollar as the currency to hold as a benchmark for multi-national government reserves. With that said, most experts believe that further declines will be short lived at best. The main reason is a further decline in the greenback will spread throughout the globe. The US is the world’s largest consumer, and a key component to most countries export sales. Only time will tell, but we should look forward in 2007 for broader trading ranges in the Dollar. Currently the EUR/USD is trading at 1.3100, finishing the American session near the day’s highs. XPRESSTRADE Analyst David Hilgeman