The trading was in a tight range in the forex market as the Easter holidays but with the beginning of the new week the market focus can turn to the current weak economic fundamentals and the credit crisis negative impact which is still exists and pressing on the investing spending confidence. The unemployment rates are still going higher in US and EU and the purchasing managers indexes are still acting in the same contracting pace which came down in UK in March. The equity market could not go far beyond its recent highs in the same thin trading. DOW could not accomplish what's far from 8000 key level which can help forming a top at this place can put pressure on the high yielding currency versus the greenback and the yen and the gold which is still trying to get over 890$ to get momentum to test back
908 as the top it has failed to pass and dropped to 864$ where it has tried to form a bottom.The British pound is still finding the same resistance at 1.477 and the support at 1.46 in a tight trading range versus the greenback and the pair is expected to find this same resistance if there can be a sell off persisting in the equity markets which can underpin the yen too and this can make it so difficult to the British pound to be break out 150 versus it. The equity markets are still closed because of the Easter day holidays and all eyes will be focusing in the US equity trading opening this week by god's will. We have today the release of US retail sales of March monthly which are expected to come up by .4% after the decline in Feb by .1% and we wait later today for Ben Bernanke's speech about the credit crisis from Atlanta. We have tomorrow the release of US retail sales of March monthly which are expected to come up by .4% after the decline in Feb by .1% and we wait later today for Ben Bernanke's speech about the credit crisis from Atlanta.
Best wishes
FX Consultant Walid Salah El Din E-Mail: snipped-for-privacy@fx-recommends.com