Monday, 11 Oct 2010

Despite Morning Gains, USD Set to Fall in Evening Trading

The US dollar managed to rebound from some of its earlier losses in afternoon trading, despite rumors that the Fed will soon enact monetary easing policies to help stave off a renewed recession. After reaching a fresh 15 year low against the yen, as well as moving above the 1.4000 level against the euro, the greenback was able to slightly recover in morning trading. Currently the USD/JPY pair is trading around 81.90, up from 81.37 last night. The EUR/USD cross has moved down to its current level of 1.3938, after going as high as 1.4010 in trading last night.

With no significant news being released today, analysts are not expecting the USD to maintain its gains going into evening trading. A low volatility situation in the market place means that erratic price jumps could occur. With investor sentiment still very clearly against the dollar, traders can expect riskier currencies like the euro and British pound to rise.

Tomorrow, traders will want to pay attention to a batch of significant data set to come out of the UK. The pound has seen some slight gains as of late against its main currency rivals. Whether or not tomorrow's news is able to further help it is yet to be seen, but market volatility is guaranteed.