Euro Falls Against Dollar On Bank Writedowns

New York London GMT Tokyo Singapore

Euro Falls Against Dollar On Bank Writedowns

By Grace Cheng on April 2, 2008 | More Posts By Grace Cheng | Author's Website

Today is the start of a fresh quarter, and it is Euro’s turn to have its sentiment undermined, at least against the dollar. After failing to test its record high on Monday, the Euro has fallen steeply against the US dollar on renewed concerns about the European banking system as Swiss bank UBS announced another $19 billion in write-downs on illiquid US mortgage-backed assets and Deutsche Bank suffered big write-downs too. Tuesday saw disappointing Eurozone data such as German retail sales which fell 1.6% in February vs expectations of small 0.6% gain; Eurozone manufacturing PMI for March fell to a six-month low.

US Manufacturing

The March ISM manufacturing index came in at 48.6, better than expectations of 47.5 and rising slightly from February’s reading. It still indicated a contraction in manufacturing activity.

Bernanke Speaks

Traders and investors will next focus on Fed chairman Bernanke’s testimony later Wednesday to a Congressional committee in the US. Bernanke is likely to continue to talk about the downside risks to economic growth, and leave the door open to future rate cuts.

Forex Trading

EUR/USD’s nearest base is around 1.5550-60, and if this breaks, it could slide towards 1.5500, 1.5470. We could be seeing the formation of a double top, but the near-term outlook for the pair shall depend heavily on Friday’s US non-farm payrolls. As for USD/CHF, after three days of lurking below strong resistance around 1.0000, it finally broke upward with a huge force to an intraday high around 1.0140. Its nearest upside targets are around 1.0170, 1.0200, 1.0250. GBP/USD fell to a three-week low around 1.9730. USD/JPY surged 250 pips Tuesday to a three-week high of 102.15 on the back of a rise in US stocks and poor Tankan survey.

Wednesday:

UK mortgage approvals 0830 GMT

Eurozone PPI 0900 GMT

US MBA mortgage applications 1100 GMT

US ADP employment 1215 GMT

Fed’s Bernanke testifies before Joint Economic Committee 1330 GMT

US factory orders 1400 GMT

Posted in Categories: Economy, Eurozone, Forex, Japan, Switzerland, UK, USA.

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Recent News:

*Bernanke: Learning From Great Depression Mistakes, Fed Has Tried To Be As Aggressive As Possible In Current Crisis - 3 mins ago
*Bernanke: There Was No Comparison Of This Crisis With Great Depression - 4 mins ago
Bernanke Says Further Rate Cuts Are “Feasible” But Impact Would Be Limited - 7 mins ago
Bernanke Says Economic Recovery Will Take Some Time - 32 mins ago
Economic Research Group Says Recession Began In December 2007 - 33 mins ago

Opinions From Our Contributors

Commodities Even As Gasoline Prices Fall Analysts Predict Peak Oil Elliott Wave Count On The CRB Commodity Index Unearth Big Gains From The Commodity “Supercycle” Gold To Rise Above $2,000? Will Gold Continue To Perform Well? Strong Dollar Could Set Stage For Gold To Shine Citigroup Says Gold Likely To Rise Above $2000/oz Next Year Recent Gold Volatility Coinciding With Price Spikes The Truth Behind Low Oil Prices Will There Be A Year End Short-Squeeze Rally? Read More »	Financials JPMorgan Chart - Head And Shoulders Pattern Let Citigroup Go Bankrupt Short Selling Of Financial And Auto Stocks Declines Sharply Fed Approves Bank Of America’s Acquisition Of Merrill AIG Got Enough Yet? Could Bank Of America And JP Morgan Fail, Leading To Global Depression? A Tale Of Two Cities - Citigroup And Detroit Financial ETFs Have A Long Climb Back Why We’re Bearish On Credit Cards Citigroup Rescue Triggers Improvement In Credit Default Swaps Read More »	Exchange Traded Funds Liquidity, The US Dollar And Market Direction HealthShares ETFs Flatline ETFs You May Want To Include As Stocking Stuffers For 2009 South Africa ETF Weighed By Slowdown Trend Not There Yet For China’s ETFs 3 Rules For Today’s Markets Three Reasons ETF Investors Could Be Grateful U.K. And Related ETF Forecast For Contraction Infrastructure Stocks To Benefit From A Second Stimulus? ETF Investors Hang In There Against All Odds Read More »
Stocks VIX Drops 30% In Five Days For Eighth Time In 19 Years A Graphical History Of The ISM And The S&P 500 Index What Is Meant By Price “Structure?” Google: A Gap Play Setup US Stock Market: Earnings Preview For Dec 1 - 5 Outlook Of The Telecom Industry In Asia Unprecedented Volatility Will Precede Highly Profitable Rebound S&P 500 Overview With Projection Retail Sales To Suffer In 2009 As U.S. Consumers Curtail Spending Sharp, Enel To Set Up Solar Power Venture Read More »	Forex Forex Markets: A Look Into The Dollar, Part III Forex Trading: USD/CAD Has A Wild Up And Down Day Forex Trading: British Pound The Biggest Loser Of The Day US Dollar Opens Weaker But Rallies Forex Trading: Next Week’s Highlights Of Events And Economic Releases Forex Trading: GBP/USD Moves Below 100-Hour Moving Average Forex Trading: USD/CHF Breaks Through Resistance Today Forex Trading: EUR/USD Moves Below Support Levels On Weaker Data Forex Trading: GBP/USD Trading Up The Channel Elliott Wave Analysis On The Euro Index Read More »	Economy What The Mumbai Attacks Mean For The Markets Troubled US Banks In 1991 Were 25 Times Worse Than Now US Recession Began In December 2007 It’s Official - United States Is In Recession Natural Gas Prices Have Dropped -56% From Peak Cancel The Party, America Is Now In Recession Which Is The Worst Of The Worst? Comparisons To The 1930s: Nonsense And Nitwittery US Mortgage Rates: They Are Not As Low As Analysts Would Have You Believe New Realities In US Commercial Real Estate Read More »

Forex Trading Software by

Course offer valid for:

Euro Falls Against Dollar On Bank Writedowns