US dollars rose against the majors
The dollar headed for its best monthly performance in two and a half years against a basket of major currencies on Friday, boosted by a growing view that the Federal Reserve may stop cutting interest rates. This week the Fed is expecting to cut the interest rates with 25 basis points to 2.00%. The U.S. currency may extend its gain against the euro as European Central Bank members stop suggesting rates will raise due to signs of a slowing economy. The dollar will also draw support as previous Fed rate cuts may help the U.S. economy recover in the second half of this year, he said.
Thedollar index, which tracks its performance against a basket of major currencies, earlier hit a one-month high of 73.030 .DXY. It last traded at 72.818, putting it on track for its best monthly performance since November 2005 at current prices.
On Friday the euro fell below 1.5600 against the dollar and reached its lowest level for the past four weeks at 1.5554. Versus the yen the dollar has touched its highest level since February at 104.80. Only the sterling gained successfully against the dollar, as closing at 1.9830.
TECHNICAL OVERVIEW
EUR/USD
The euro fell against the dollar, as breaking through the psychological level at 1.5600. Support of the European currency will be expected at 1.5500, 1.5330 and 1.5150. In the opposite direction the resistance is expected at 1.5850 before reaching the key level at 1.6020.
EUR/USD (chart, table)
USD/JPY
The dollar rose versus the yen for third consecutive day. The U.S. currency is under the key resistance at 105.00. Successful break upon it will move the focus on 107.00. In the opposite direction the supports are expected at 102.90, 101.50 and 100.20.
USD/JPY (chart, table)
GBP/USD
The sterling rose against the dollar, asreaching a day high at 1.9890 and closing at 1.9830. The pair remains without clear direction. In upside direction the key resistance is expected at 2.0030, followed by 2.110 and 2.0250. On the other side the supports are expected at 1.9600, 1.9410 and 1.9340.
GBP/USD (chart, table)
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FX daily review 28.04.2008.pdf, 158 Kb
