The fundamental side of the market!
The major trend for the USD is definitely heading south; as there really is no signal of a full recovery except for a day to day correction. The other fundamental news for the week of Oct. 04-08 may well be concentrated on several key reports of Ben Bernanke outlook for the economy and the Non-farm payrolls.
A weaker USD due to the Fed's monetary easing for the US economy to stimulate growth has been well in the market for sometime not to mention the currency wars between the two major trading partners China and the US. Needless to say, that China's role as a major player in the world market can no longer be ignored. And the US trade deficit and debt problems can only be helped with a long term balance of trade which includes a lower USD; whereas US exporters may well benefit from such stiff worldwide stiff competition.
At the rate that the market is going for the USD; the continued strength of the European currencies in spite of its economic troubles amongst its neighboring countries will continue in the next couple of months. Although, we could speculate that the 4th quarter would include a consolidation for the USD within the next two months and a slight recovery towards the end of the seasonal year. A wider trading range of prices would be expected as last quarter trades and position adjustments would be made other than book squaring positions for the year. However, it too early to speculate on a USD recovery at this time as all probabilities are non-existent. Talking good outlook and stocks market performance is not enough to convince investor's negative outlook at this point in time.
The technical market outlook of the Asian, European trading heading to the North American sessions can be followed on our website at:
http://megatrade101.com/ " Technical Vs. Fundamental Analysis 10.3
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