Monday, 17 Aug 2009

USD Moves Lower on Optimistic U.S. Data

The U.S. market opened with positive results for the Empire State Manufacturing Index of 12.1 and for the TIC Long-Term Purchases publication shortly afterwards of $90.7 billion. The impact on the U.S. Dollar and the forex market has been dramatic. Since these releases, the Dollar has plummeted, despite rising considerably since today's opening. There could be a reversal of recent daily trends for the first time in the past several trading days today. For example the USD may end today's trading higher vs. JPY if current trends continue.

The USD/JPY cross is now virtually unchanged at 94.60. The GBP/USD pair is trading lower by 130 pips at the 1.6321 level. The Pound's lack of strength may be owed to no proper basis at the moment to support demand for the British currency. This is despite the Pound making up over 40 pips in the last 40 minutes. This optimism from the U.S. has failed to impact the EUR/USD cross strongly. However, as the day unravels the overall impact may be more apparent.

Looking ahead to the rest of today's trading, it is advisable that you continue trading the USD crosses, as market volume continues to build. There may be opportunities for big profits when trading the major pairs today. This is also the case for Crude Oil and Gold, as you forex traders should take advantage of the improving U.S. Dollar and the imminent downward trend of the US. Dollar in the near future.