The US Dollar ended a turbulent week in Asia mixed for the session, but up overall for the week. This week's gain has ultimately been due to what looks like Wall Streets resilience in the face of the subprime crisis, however the market is still looking to tomorrow's earnings by Citigroup after yesterday's earnings by Merrill disappointed. Most look at Citigroup as a bank that did not weather the credit crisis storm very well and the Dollar could take a hit if the earnings are poor. The EUR/USD started Friday off near 1.5865, fell to 1.5821, and then reversed to close out close to where it started off, at 1.5865. The EUR/JPY pair, after dramatic trading in NY eased from those NY highs of 169.08 and began the Asian trade day near 168.50, after small peaks and valley all session we saw the pair end the week in Asia right around 168.40. In the case of GBP/JPY, just a little over 24 hours ago the pair was trading near 208.00, it peaked out in at about 4pm EST in NY near 213.60, and as London awakes to its Friday morning, we're at 212.05 This is a fine example of some of the opportunities you can find in the FX markets. As the crosses were busy, USD/JPY was pretty flat, chugging along in a 35 pip range and closing out the session near 106.20.
In the UK, the GBP/USD took a hit as the BBC reported that the Treasury may change its own rules to allow more borrowing as opposed to raising taxes. The pair tumbled from earlier highs above 2.0030, but touched 1.9942 before it ended the session near 1.9970.
Ahead, the spotlight will be on Citigroup as well as Crude Oil, whose 3 day decline has been a boon for the greenback, with these players at the table, anything is possible to close out the week. Enjoy the weekend….
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