Thursday, 18 Feb 2010

Dollar Continues to Strengthen Against Rivals

The dollar rose against most of it major currency pairs on Thursday in a volatile session, as mixed data highlighted the fragility of the U.S. economy but failed to offset investors' concerns on the outlook for the euro zone. The Dollar is currently trading higher against the JPY by nearly 50 pips at 91.30. It is also trading higher against EUR and GBP.

Demand for the greenback fell following an unexpected jump in weekly U.S. jobless claims, while the government separately reported a higher-than-expected rise in January producer prices. Other data released later indicated improvement in regional U.S. economic activity, which helped stocks rebound from a lackluster opening.

Tomorrow, forex traders cannot afford to overlook a batch of data that is expected from the leading economies. Both the Europe Flash Manufacturing PMI and U.S CPI will be released at 9:00 GMT and 13:30 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.