Forex Blog: Currency Trading News & Analysis.

February 13th 2005

Pending Greenspan testimony weighs on Euro-dollar exchange rate

This week, Federal Reserve Chairman Alan Greenspan is schedule to testify before Congress on the state of the economy. Currency traders are already trying to forecast the impact this testimony will have on exchange rates. They will be watching Greenspan, to see if he foreshadows changes in American interest rates. Many traders are anticipating good news about the current account and trade imbalances, which they believe will accelerate the dollar’s recent rally against the Euro. Others expect the exchange rate will improve irrespective of Greenspan’s testimony, due to technical factors. reports:

The euro’s steep fall against the dollar in January "suggests (that) the probability of another extended move lower by euro/dollar (i.e. 5 percent) in the coming weeks is slim, especially since there is no new information to suggest the dollar’s downtrend should be over," said analysts at ABN AMRO in a research note.

Read More: FOREX-Dollar steady against euro; market eyes Greenspan

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Posted by Adam Kritzer | in Politics & Policy | No Comments »

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© 2004 - 2018 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.