Friday, 28 Aug 2009

USD Rebounds Sharply before Closing out the Week

With the constant shifting taking place among investors, the USD has taken many for a ride these past 24 hours. Thin trading and increased risk appetite drove the Dollar lower against all of its counterparts at the start of today's trading. However, those same market conditions, combined with end-of-month repositioning, have led to a sudden rebound in the greenback at the close of the trading week.

In other news, Britain's economy shrank slightly less than anticipated and the Swiss KOF Economic Barometer showed growing confidence in Switzerland. The latter report led to a strong mid-day rally in the CHF. The University of Michigan also published a consumer sentiment report for the United States which showed a mild increase in confidence among American consumers.

Heading into next week it may be important to note that the start of a new month always brings heavy volatility with Non-Farm Payrolls and vital employment data. Traders should be wary of current trends as next week's news could reverse any of this week's popular movements.