The Dollar continued its good run yesterday ahead of Barack Obama delivering his speech on US employment. Obama will unveil his proposition to kick start growth in the job sector and propel the US economy forward. The US Dollar has consistently gained against most of its major counterparts over the last week but is now reaching what looks to be key resistance points so a retracement could well be on the cards over the coming week or two.
The Euro is struggling along and rumours that the European Central Bank are likely to take a more dovish tone towards inflation won’t help the situation. The Euro has benefited from the recent aggressive stance of Jean-Claude Trichet of raising interest rates across the seventeen nations to combat the rise in inflation. However, new data suggests a slowdown in growth is expected across the region and this could weigh heavily on the Euro over the coming months.
Sterling is unfortunately still struggling along and the consistent poor data from the UK isn’t helping the current situation. With there still being substantial pressure around for some of the other major currencies this should still leave the opportunity for Sterling to make some modest gains over the next month and a period of 1.14/1.15 against the Euro and another period above 1.6000 against the USD are still more than on the cards.
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