Thursday, April 07, 2005

is the dollar run-up over?

Fed Chairman Alan Greenspan spoke twice in the past two days without commenting on inflation, causing the dollar to retreat more than a cent from a seven-week high against the euro reached on April 5. It gained 3 percent in the past two weeks, after the Fed said on March 22 price pressures were building.

Losses in the dollar accelerated today after it fell through $1.29 per euro, where traders had placed pre-set orders to sell the U.S. currency. Technical charts indicated that its rally was losing steam. There's been a major rally in the dollar, and given that, its run looks to be over for now given massive technical resistance.



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