Wednesday, April 2, 2008

Euro rebounded


EURO rebounded as Fed comments of growing uncertainty in the U.S. PPI figures for the month of February came in on expectations at 0.6%. Looking ahead Retail Sales figure out of Europe will be key data with forecasts lying at 0.2% ECB president Trichet is scheduled to where markets are widely expecting a hawkish stance emphasizing the banks focus on fighting inflation. Euro is expected to have mixed for the day with lending support at 1.5540 and holding resistance at 1.5840 . Trading range is expected between 1.5590-1.5810 levels. Momentum holds upward and stochastic gives a caution signal for slight downward correction. Currency is trading well below the moving averages giving confirmation on the downtrend

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