Tuesday, 14 Jul 2009

Goldman Sachs Report Dictates Today's USD Trading

Much of the U.S. Dollar's early gains were erased today, as Goldman Sachs beat Wall Street estimates by posting record profits of $3.44 billion Dollars for the 2nd quarter. As a result Goldman Sachs stock value climbed 75% in New York. This automatically led to a rally on Wall Street for yet another day. Therefore, this erased some of the early gains that the USD had recorded against the Japanese Yen and the EUR.

The EUR/USD is currently trading at 1.3947, down just over 30 pips for the day. This comes about as U.S. equity gains in the U.S. are starting to dissipate. Therefore investors are slowly buying-back the greenback again. This may be partially due to the release of mixed U.S. data today, such as Retail Sales and Business Inventories. Thus the forex market still fails to find a clear direction today. Against the British Pound, the USD is trading lower by about 25 pips at 1.6280, as today's reports showed a big drop in British inflation.

Looking ahead to the U.S. market close the important thing to pay attention to is U.S. equities. This is so, because if U.S. equities continue to rise, then this could spur a mini USD rally going into to late night trading. The currency pairs to watch are the GBP/USD, USD/JPY, and EUR/USD. As the trading day comes to an end, traders are advised to pay close attention to Crude Oil, as it continues to slip, after rising earlier today. This commodity may be a key money maker for the coming week.