Euro vs Dollar - Latest  Currency Rates EUR/USD 12th August 2009

Euro vs Dollar - Latest Currency Rates EUR/USD 12th August 2009

Following the recent “waterfall” in the euro vs dollar yesterday’s price action came as no great surprise as the currency pair attempted to re-base around the 1.41 price point ahead of the FOMC meeting which is due to complete later today.  The low of both Monday and Tuesday seemed to find some support from the 40 day moving average, and indeed this has been replicated during this morning’s London trading session where the low has once again bounced off the 40 day moving average.  This would tend to suggest that there is some support at this level. however whether it is likely to hold is anyone’s guess and the medium term direction for the Eurodollar (as for many other pairs) will be driven by the market’s reaction to the FED statement.  Should the Committee indicate that interest rates may have to rise in the short to medium term this could convert into further Dollar strength as the currency markets react positively to an improvement in the dollar yield.   If this creates a strong bullish move in the dollar then any break below the 1.38 region could herald the start of a longer term decline for the Euro moving into Q3.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.