Tuesday, July 24, 2007

Dollar Rebounded vs Euro

The dollar rebounded against the euro slightly as a corrective move following recent sharp decline. The euro fell from 1.3850 to test 1.38 handle versus the dollar. With no economic data release, most major currencies trade in narrow ranges. Should the euro break 1.38, the dollar correction may extend to 1.37 before further euro rally to 1.39.

The sterling climbed to a fresh 26-year high at 2.0602 versus the dollar on expectations that the Bank of England will raise interest rates at least one more time in the second half of this year.

Commodity currencies gained as copper surged and oil prices hovered at high level. The Australian dollar rose to as high as 0.8842 versus the dollar, while the Canadian dollar stood firm below the 1.05 level against the dollar.

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