Dec 10 2008
Low Liquidity Expected for the USDToday
The U.S. Dollar suffered additional losses against most of its major currency pairs yesterday. This occurred despite the better than expected figures (-0.7%) that were released from the Pending Home Sales Indicator for October. Traders witnessed the USD fall against the EUR; closing at around 1.2930. The USD also took a small dive against the Yen and the Pound Sterling.
The recent reassurances to rescue the U.S. economy by Obama have provided hope that the U.S. downturn will be met by aggressive government intervention. This talk has coincided with bleak U.S. economic data and recent profit warnings from major U.S. companies, which has recently tempered market sentiment. Analysts say that the weakness in the USD yesterday may be due to fears that the U.S. economy will be hit more negatively in comparison to other developed economies.
Today the greenback is likely to experience less volatility than yesterday, as little news is expected to be released from the United States. The release of economic news, such as Crude Oil Inventories is unlikely to have an impact on the USD.
My Forex Blog
Good article. I guess tomorrow we’ll have much more volatility with the US trade balance report.