Thursday, 26 Nov 2009

Dollar Rebounds on Return to Risk Aversion

The dollar gained sharply in holiday-thinned trade on Thursday as renewed risk aversion prompted investors to shed riskier assets. But dollar-bearish sentiment remained intact on views U.S. interest rates would stay low for some time and on pressure for the dollar to weaken to correct the U.S.' imbalances.

The USD/CHF cross is actually currently trading higher by 90 pips today at 1.0035. However, against the EUR, the Dollar is trading higher by 100 pips at 1.5005, as we see a sharp correction in the pair's behavior. The USD/JPY pair is level today at 86.50, as market volatility seems to have slowed down as late night trading approaches.

Looking ahead to late night trading, it's recommended that you continue buying-up the greenback, whilst the current trend it still hot.