The Dollar was mixed on Thursday as European Stock markets tumbled brining safe-haven flows into the USD for now, at least. The Dollar also collapsed to a 15 year low against the Japanese Yen, a strong Yen is typically not seen as good for Japan which relies on exports for growth – higher Yen value typically translates into less export orders. The session overall was light as US markets were closed, so it is difficult to determine if the recent risk rally is over. Dubai’s surprising announcement that it will be restructuring its biggest corporate debtor, Dubai World, and delay repayment on some of the company’s $59 Billion of liabilities, was seen as denting risk appetite across asset markets on Thursday, to the Dollar’s benefit as a whole.
At 11:00PM GMT, the US Dollar was up.84% to the Euro to 1.5007, down .9% to the Japanese Yen to 86.54, up 1.33% versus the Canadian Dollar to 1.059, up 1.17% against the British Pound to 1.6508, up 2.1% to the Aussie to .9136 and up .7% against the Swiss Franc to 1.0032.
87.11 has been also broken and a lowest at 86.29 has been formed, which match with the lower band of the long term bearish channel (bearish slant). A rebound occurred on this level. We will advise to keep short positions as far as 87.11 is resistance. If a break out occur, a correction on 88.01 is expected.
Written by Finexo.com