Thursday, 27 Aug 2009

Dollar Foresees a Bearish Trading Session

Since the opening of the U.S. market the Dollar has declined against most of its currency pairs. This was initiated by the publication of mixed results for U.S. economic indicators. For example positive Prelim GDP and negative Unemployment Claims data from the U.S. led to uncertainty in the forex market, as these figures showed mixed signs of recovery for the American economy.

These factors led the USD to go bearish throughout Thursday's trading. The Dollar is currently trading lower against the EUR by nearly 150 pips at 1.4385. It is also trading lower against the GBP and JPY, as traders feel that the U.S. currency is an unstable bet for today.

As the U.S. market comes to a close, the USD may continue to weaken further, as forex traders feel that the USD is a risky bet for today. As a result, fears about the Dollar's instability have led Oil to rise over $1.50. If today's trend continues, then the USD may be in for a bumpy week as a sell-off of the Dollar may hit full-force. If this does occur, then we may see the EUR/USD hit the 1.4450 level by the end of the week.