Friday, 18 Feb 2011

Greenback Ends Week on a Downward Trend

The US dollar took heavy losses against all of its main currency rivals today following a speech from Fed Chairman Bernanke. The Fed Chairman sounded a largely pessimistic note with regards to the global economic recovery, which led many investors to continue shorting the greenback. The EUR/USD has moved up close to 150 pips since the speech, and is once again approaching the 1.3700 level. Meanwhile, the USD/JPY fell over 30 pips today, and is currently trading around the 83.05 level.

Turning to next week, the dollar will have ample opportunities to recoup its recent losses as a batch of US data is expected to show positive growth. Traders will want to pay attention to US Consumer Confidence as well as Existing and New Home Sales figures. Should any of these indicators show substantial growth, the dollar may turn bullish as a result.