Tuesday, May 1, 2012
Dollar held gains on the Yen having bounced from 2-1/2-month lows after upbeat ISM -Forex Insight
The ISM report showed the strongest rate of growth in 10 months, countering recent speculation the Federal Reserve will embark on a third round of bond buying to bolster the economy.
The dollar rebounded above 80.00 yen and last stood at 80.110. Its recovery from a trough of 79.640 yen caught speculators short and forced them to buy back the dollar.
Immediate resistance was found at Monday's high of 80.39, ahead of 80.45/50, the 38.2 percent retracement of the 81.78/79.64 move. Support is seen at 79.60 yen, the 100-day moving average. The euro retreated to $1.32365, having briefly touched a one-month peak of $1.3284 overnight. The single currency has been stuck around $1.3235/45 for four trading days with dealers citing talk of central banks on both sides of the market to hem in price action. - Reuters link
Forex Insight Group
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