FX Daily Wrap Up

The Greenback pulled modest gains against the majors today after a seven-day losing streak. With most of the world’s largest currencies trading in extremely tight ranges today, it would be hard to characterize the Dollar’s gain as anything but weak. This might be the start of a short-term Dollar bull while the market is expressing indecision. Last week’s EUR/USD cross produced a new high for 2007 and so far we have only seen a modest retraction. If the trend continues against the Dollar, it could easily top 1.3348, which was last years highest mark. Fears out of the US range from the subprime mortgage market to Greenspan’s comments regarding a possible recession. Tuesday has a small amount of news with Housing Starts and Building Permits. Housing has been in the news as of late, with many analysts predicting a further decline. In other more positive news, Japan is not expecting a rate hike in the up coming BOJ release this week, but is expecting a bump in the foreseeable future. The BOJ is widely expected to rise by another 25 basis points right before the parliamentary elections. The EUR/USD is currently trading 1.3292, and the USD/JYP is trading at 117.48. David Hilgeman, XPRESSTRADE Analyst