Friday, 14 Jan 2011

USD Tumbles to Close Out the Week

A series of negative news out of the US caused the greenback to tumble against most of its main currency rivals to close out the week. The Core Retail Sales, Retail Sales and Consumer Sentiment figures all came in below expectations. The EUR/USD is up over 60 pips from earlier today, and is currently trading around the 1.3365 level. The GBP/USD is up some 60 pips since this morning and is currently trading close to the 1.5880 level.

Next week promises to be full of market volatility, as news events from the US and euro-zone are set to dominate the headlines. On Tuesday, traders will want to pay attention to the German ZEW Economic Sentiment figure and the US TIC Long Term Purchases report. The results of these two economic indicators are likely to set the pace for the euro and greenback for the rest of the week.