This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dollar Soft, but Rangebound

NEW YORK ( BBH FX Strategy) -- The U.S. dollar is paring back some of its recent gains but continues to trade in tight ranges.

The euro has recovered but stalled out just ahead of 1.33, a key level of resistance. A break of this level would likely open up a move toward 1.350, but we expect economic weakness in the euro zone and concerns about Spain to remain headwinds for the euro. For now, we remain in a 1.30-to-1.33 range.

The Australian dollar is flat near 1.04, after declining for three consecutive days. The yen is also flat on the day, after rallying nearly 1% over the past five days.

Sterling looks set to close the week flat after data and BoE minutes left the door open for another round of QE in May. Global shares are down, with the MSCI Asia Pacific Index down 0.6%. European stocks declined for a fifth day, with the EuroStoxx 600 down 0.3%. Bank stocks are down 0.6%. Commodity prices are firmer and recouping some of the losses Thursday.

Follow TheStreet on Twitter and become a fan on Facebook.

Despite Thursday's dollar rally, most currencies remain in this month's trading ranges. The euro in fact has recovered to the upper end of that range, though the 1.33 area representing the 62% retracement of the February-to-March drop in EUR is offering some resistance.

News from the eurozone is limited Friday, but certainly better than Thursday as Italian retail sales for January came in stronger than expected, rising 0.7% month over month. Prime Minister Mario Monti holds a cabinet meeting Friday, most likely to discuss progress in passing labor reforms.

French business confidence also came in better than expected and rose for the second straight month. So overall, calm has returned, but Spain 10-year yields remain elevated and near 5.5%, suggesting ongoing concerns have not entirely gone away. We need to see a break of 1.33 for the euro upside to open up, perhaps as high as 1.35. U.S.-German two-year yield is 12 basis points Friday, up from 10 bp Thursday.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.55 -0.36%
FB $94.41 -2.70%
GOOG $631.93 0.00%
TSLA $263.82 0.00%
YHOO $37.67 0.00%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs