Monday, 30 Aug 2010

Dollar Slides against the Majors

The USD witnessed a steady depreciation against most of its major currency counterparts during the morning trading session, as an improvement in the market pushed investors toward riskier assets. The Dollar is currently trading lower against the JPY by nearly 50 pips at 84.90. It is also trading lower against the EUR and GBP, as investors remain wary of making big bets in favor of the Dollar these days.

Gold Prices was steady around $1,235 on Monday as the dollar fell slightly against the EUR and crude oil maintained its strength, although some resistance emerged around that level. Further gains could be on hold for the rest of the week, however, as investors await news that will provide clues to the state of the global economy.

The release of the U.S Personal Spending and Core PCE Price Index at 12:30 GMT, is likely to set the tone for the Dollar's direction in today's trading. Better-than-expected results may help the Dollar recover some of early trading losses against some of its crosses such as the JPY. On the other hand, if the results turn out to be in line with forecasts, then the Dollar may record a fairly bearish session in today's trading.