Forex Update

Rate has liquidation break into close-in stops over thin weekend but large names show up on dips traders say taking advantage of conditions. Traders note good sellers above the market but they may be late as traders note protective stops from model accounts around 1.3260 area.
Traders report sovereign interest on the dip. Offers likely waiting back at 1.3330 area but stops are said to be building in size above the 1.3340 area. Rate is firm and possibly set to reverse. Rate appears solid above the 100 day MA. Foothold over the 1.3500 handle needed to extend to the upside.

The US dollar edged higher to 3.6556 against the Israeli shekel at 2:35 am ET Friday. This set the highest point for the pair since March 3,2009. If the dollar-shekel pair gains further, 3.69 is seen as the next target level. The dollar-shekel pair that closed Thursday's North American session at 3.60 is currently trading at 3.6447.




The European currency that declined to a 3-day low of 1.3508 against the US dollar at 2:20 am ET Friday strengthened thereafter. The euro-dollar pair is currently trading at 1.3633, compared to 1.3606 hit late New York Thursday.

During early trading on Friday, the British pound slumped to fresh multi-year lows against its most major counterparts, as investors

grew fearful about the global financial crisis despite concerted efforts by central banks around the world to unfreeze the credit markets and prevent a global slowdown. The pound slipped to a 5-year low against the dollar, 12-year low against the franc and a more than 7-year low against the yen. The pound also weakened against the euro and touched a 1-month low.