Friday, 27 Aug 2010

Dollar rises on Prelim GDP Data

The dollar rose versus the yen on Friday after a slightly better-than-expected reading on the U.S. economy in the second quarter pushed Treasury yields higher, boosting the appeal of the greenback. The U.S. economy grew at a 1.6% annual rate in the second quarter, less than previously calculated, as companies reined in inventories and the trade deficit widened.

The USD/JPY cross is actually currently trading higher by 90 pips today at 85.30. However, against the CHF, the Dollar is trading higher by 50 pips at 1.0275, as we see a sharp correction in the pair's behavior. The GBP/USD pair is level today at 1.5512, 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.