The USD Shows Local Bullish Momentum

The USD saw bearish trends against its crosses yesterday. The bad trading day was highlighted by the EUR/USD pair’s breach above the 1.55 level. The USD was affected the most by the report released by Goldman Sachs (a leading global investment baking group) on the broader banking industry. The report estimated that credit losses from deterioration in the mortgage and lending markets will not peak until early 2009, and that U.S. banks, having already raised about $120 billion in capital, will need to raise an additional $65 billion to cover the losses. This reminded traders of the past banking crisis that was thought to be overcome. The other major negative economic news coming from the U.S. yesterday was the release by the Commerce Department, which stated that U.S. May Housing Starts fell 3.3% to a 975,000 annual rate, the lowest since March 1991. Not only did this impact the USD […]

Original post by Forextvblog

This entry was posted on Wednesday, June 18th, 2008 at 2:22 am and is filed under currency trading, USD, forex, Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.