Market Analysis

The transitional period for the Forex market particularly for the USD passive recovery has been extended as shown on the weakness of the USDX still below the 78.05 level. Although, the slight retrieval from last week's closing have given some sign of relief as most major players were hesitant to push it further by simply taking long positions either on the GBPUSD or the EURUSD. based on our previous market view analysis that the slow ladder-like recovery for the USD would be towards the end of the 1st quarter. As the 74.25-76.80 support range is still viably supportive on a technical stand point as of this writing.

The direction of the USD would be determined by the report on the Non-Farm Payroll numbers and unemployment data due this week. However, the determining factor before the reports would be the Middle-east situation where money flows well over the commodities market in oil trading for the past few weeks now. Until a more solid resolution other than the sanctions held by both the US and UK would still not be enough for investors to change any immediate sentiments. As they would normally say...go where the money flows.

The Euro and Pound's rally for the past week have been anticipated in spite of a mixture of reports in the market. As investors market sentiments and trades were focused on the oil accelerating over the $100.00/bl. level. Though some corrective moves were made but the continuing tensions over at Libya and parts of the Middle-East has made this transitional move for the USD to start. No such momentum has been building as volumes are seen over at the commodities market.

We remain true to our market analysis for now not as a bias opinion but simply it does take more time to ignite a sluggish US Dollar with oil rising and Gold at the back-drop of the fundamentals. However, the month of April should prove to be quite interesting if and when our time table on market projections would coincide with the market movements.