Spoteuro forex daily outlook november 8, 2010
We continue to see market volatility as concerns within the EU continue to weigh on the euro. The dollar had a very bullish rejection of 1.4300 vs. the euro and we are looking for a confirmation and further dollar rally against the European counterpart. We’ve been discussing the possibility of dollar rally for the past several months and after several rejections above 1.40, we may now see continuation; however, a confirmation of a close below 1.3750 is a must. The market reaction to a doomsday dollar following further monetary easing by the Federal Reserve, in our opinion, has been an over-reaction. Most noteworthy, we want to point out that the United States doesn’t have any problems attracting capital at such low interest rates. The problems may arise when the Fed begins to unwind their holdings. At that time, interest rates may have to go up in order to offset the supply. Until we see a major fundamental trend change in TICS data, the market can only speculate as to what will happen down the road. With that being said, anything can happen and the trick to successfully trading forex is the ability to adapt to current market trends. Courtesy of CNBC: The Biggest Holders of US Government Debt 10. Insurance Companies – $260.6 billion 9. Depository Institutions – $273.7 billion 8. United Kingdom — $448.4 billion 7. State and Local Governments — $534.7 billion 6. Pension Funds – $643.8 billion 5. Mutual Funds — $648.6 billion 4. Japan — $836.6 billion 3. China — $868.4 …
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