Thursday, 23 Dec 2010

Bullish Dollar Expected As Week Comes to an End

The euro had another bearish run today, falling against virtually all of its main currency rivals despite renewed pledges from China that it would help the euro-zone through its debt crisis. The EUR/USD is once again well below the 1.3000 level, and appears to be on a continuous downward slope. The same can be said for the EUR/JPY and EUR/GBP pairs. Meanwhile, the US dollar was boosted against its rivals, following a better than expected Core Durable Goods Orders figure. The figure, which had been forecasted to come in at 1.7%, surprised traders by coming in closer to 2.4%. Traders can expect the dollar to continue its bullish trend as we close out the week. With most global markets closed tomorrow ahead of the Christmas holiday, there will be no fundamental news to counter the greenback's current momentum. At the same time, a low liquidity environment has been known to create unexpected price jumps. Traders will want to watch out for any strange price shifts throughout the day tomorrow.