FX Technical Outlook: Yen and Dollar Weakness Set to Continue

by alexoscarew | November 25, 2012 at 06:03 am

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Read Full Article at: http://newsdoors.blogspot.com/2012/11/fx-technical-outlook-yen-and-dollar.html

Last week, we recognized that the US dollar was overstretched and anticipated some consolidation/correction. Yet the pace and magnitude of the move was surprising, especially in light of the series of disappointing developments in Europe, which include the initial failure to resolve Greece's funding problems and the EU's next 7-year budget. Nor was the economic data inspiring, as the main report of the week, the Nov flash PMI reading, suggests the euro area economy continues to contract here in Q4.

In contrast, the US reported stronger than expect existing home sales and housing starts, as the painfully slow recovery in the housing market continues. Weekly initial jobless claims slipped back as the impact of the east coast storm fades.

Read Full Article at: http://newsdoors.blogspot.com/2012/11/fx-technical-outlook-yen-and-dollar.html