Corporate foreign exchange news

Forex market news: Dollar needs to find momentum

Monday, 16 November 2009 09:53:37 GMT

The dollar will remain pegged back in a bearish cycle unless a "meaningful change of trend" is witnessed in the US, foreign exchange analysts indicate.
Looking ahead to the trading week, Daily FX's John Kicklighter claimed the gains witnessed last week against the euro will not hold unless a strong momentum develops on the back of stronger economic data.
He explained that while there is a raft of important data due out this week, "the experienced fundamental trader knows there is a low probability that any one (or very likely all of data working in conjunction) could actually leverage such a meaningful change of trend".
Predictions for movements in the dollar will also be weighted by analysis of wider appetites for risk on the trading floor, he added, explaining that the bullish trend in high-yielders will continue to weigh on the greenback unless a market-shifting event is witnessed.
Daily FX has also this week issued a bullish outlook on the pound/euro pair, although it warned that the interventions from the Bank of England could still hurt sterling's prospects.ADNFCR-2522-ID-19460657-ADNFCR
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