1st Qrt.Ending USD Strength

With some economic barrage of news coming for the week from consumer Confidence, the ISM manufacturing report, US Jobless claims and again, the Non-farm Payrolls numbers would show a mixture but generally true US dollar supportive news report that would trigger a confirmation of the US economic recovery is underway.

Although, the reports may again be supportive of increased volatility; traders and investors are well focused on a much anticipated and bias bounce for the Euro and the British Pound which has failed from the first few attempts since it reached their technically oversold areas. Most analyst have time and again recommended shorts on recovery as a way for the European currencies to move lower than where they are now. In short, the mindset of the traders and investors have always been in line with Euro's weakness as the underlying support for the US dollar's strength and not more on the other way around.

As news in all financial networks has been concentrated in European financial troubles and have not really capitalized on the US government's economic solutions that is leading the recovery from the financial crisis.

On a technical basis, the opening prices for the EUR/USD and the GBP/USD has led a slight recovery as early as the Asian trading sessions which would spill over to European session. But these price fluctuations are relatively sluggish for the coming release of the reports towards the week ending April 2 which happens to overlap with the weeks close and the opening of a new month and the 2nd quarter of the year. Expect some rapid volatility on prices as adjustments are again made during this period. And the total opposite of the market sentiments will prevail upon the end of the week and the first three days of the 2nd week of April. Which we have anticipated a probable US Dollar correction could be made and anticipated by most major institutions in the Forex market. This is vital to take note of as it has proven to be true to its behavioral patterns since we could remember.

The USD/JPY would still take the lead over the strength of the USD compared with the Swiss Franc. However, the continued upward momentum would still build up for the CHF/JPY and the EUR/JPY. these cross pairs has been the latest favorite of our trade team since the profit potential are far greater than any of the major pairs. As trading currency spread and diversification should always be practised and applied whenever engaging in the Forex trading market.

The Aussie and Kiwi will continue to experience some sluggish outlook and motion for their prices. Although, as most Asian currencies are more favorable to trade for their resiliency towards the financial crisis and are still enjoying a boost in their GDP and trade relations with Europe and the United States.

Good Luck and Happy Trading!