Monday, 25 Oct 2010

USD Recoups Some Losses in Afternoon Trading

After taking heavy losses against most of its main currency rivals during mid-day trading, the US dollar has managed to stage a slight bullish correction. The EUR/USD pair, which had earlier peaked at close to the 1.4080 level has since fallen, and is now trading around 1.3970. At the same time, the USD/JPY pair fell earlier today to a fresh 15 year low, reaching as low as 80.41. The pair has staged a minor upward correction, but remains well below the 81.00 level.

Tomorrow, traders will want to pay attention to a number of economic indicators out of the UK and US that are set to create market volatility. The UK Prelim GDP Figure, set to be released at 8:30 GMT, is forecasted to be worse than then previous figure. If predictions are correct, traders can expect the sterling to take early morning losses against the euro. At 14:00 GMT, the US CB Consumer Confidence figure is scheduled to be released. Analysts predict a slight increase over last month. If so, the dollar may be able to regain some of its earlier losses to the yen.