Thursday, 3 Feb 2011

USD Recovers Losses in Morning Session

The US dollar turned overwhelmingly bullish durig the morning session today, making significant gains against virtually all of its main currency rivals. Both the EUR/USD and GBP/USD pairs have dropped close to 60 pips since the morning session began, and are currently trading at 1.3755 and 1.6205 respectively. Meanwhile, the USD/JPY has gone up 25 pips in the same amount of time, and is currently trading at he 81.76 level.

Turning to the rest of the day, traders will want to pay particular attention to the weekly US Unemployment Claims figure set to be released at 13:30 GMT. Analysts are forecasting a drop in the number of people who filed for first time unemployment insurance last week. The significance this figure could have on the market may be larger than usual, given tomorrow's all important US Non-Farm Payrolls figure. Should today's number come in at around the expected 420K, the dollar may be able to extend its gains into the evening session.