Friday, 15 Jan 2010

Dollar Rises as Risk-Taking Disappears

The US Dollar rose on Friday, reversing earlier losses against other major currencies such as the EUR, as investors were cautious of building riskier positions while the global economic outlook remains uncertain. The USD rose against the EUR, pushing the oft-traded currency pair to 1.4395. The dollar experience similar behavior against the CHF at around 1.0260.

The EUR had been under pressure after European Central Bank President Jean-Claude Trichet reiterated the importance of a strong dollar and highlighted the fiscal challenges to a number of Euro-Zone countries.

Today, many impacting economic indicators are expected from the U.S. economy. Traders are advised to pay special attention to two leading indicators, the U.S Core CPI and Prelim UoM Consumer Sentiment at 13:30 GMT and 14:55 GMT respectively. A positive result from both these indicators might boost the Dollar towards another day of rising trends.