Tuesday, 4 Aug 2009

Dollar's Drop Halted

After dropping against all the major currencies yesterday, the Dollar's downfall was halted. During today's trading, the Dollar is keeping steady rates against the EUR, the Pound and the Swiss Franc. Despite the calm trading, the Dollar continues to drop against the JPY, and the USD/JPY is currently trading near the 94.70 level.

The U.S. monthly Personal Income report, published at 12:30 GMT, showed a drop of 1.3% in incomes in June. This marks the largest monthly drop in U.S. incomes in four years! The Personal Consumption Expenditures Price Index and the Personal Spending report remained at similar rates opposed to the previous month, and had little impact on the market.

Later today, at 17:00 GMT, the US Pending Home Sales report will be released. The housing sector continues to play a massive role in the U.S. economy, and its effect on the Dollar is well proven. Current expectations are for a 0.6% increase in June. If the actual result will be similar, it looks to have a positive affect on the Dollar.