Looking for directions

A week of optimism and good news. Things looked alright. USD also played to the gallaries, strengthening against most currencies. Look at the flip side and you find that there is a spate of not so encouraging signals from economies elsewhere. UK housing stats ate disappointing, the German consumer confidence is low. ANZ reports not so encouraging results and forecast, Inflation is sky high in Japan, South East Asia, and climbing still all over. So, if the US is not coming out with comparative disappointing numbers, is it all OK? Maybe for the dollar. It has strengthened to the 1.57 mark against the Euro and has infact gone below briefly last week, probably triggering some of the stop losses. Against the Yen too, it has toyed with the 108 mark before settling in the vicinity.

My outlook for the two.....should stick to their resistances .....1.57 and 108 respectively while testing them time and again as I believe the worst is not yet over and for the fact that the implications of the sub prime will take some time to be erased globally.