Tuesday, 29 Dec 2009

U.S. Dollar Sees Major Gains Against Yen and Euro

Following a report showing an increase in American consumer confidence, the U.S. Dollar reached a two month high versus the Yen in afternoon trading. USD/JPY is currently trading around the 92.00 level. With no major news events for the Japanese currency scheduled for before the New Year, it appears that the Dollar will hold onto its gains going into 2010. Against the Euro, the positive American news resulted in some measurable gains for the Dollar. Currently trading at around the 1.4355 level, traders can expect the EUR/USD pair to maintain its current levels going into the New Year. Tomorrow, traders may want to keep an eye on the KOF Economic Barometer out of Switzerland. The figure set to be released is an indicator predicting the direction of the Swiss economy over the next 6 months. Set to be released at 10:30 GMT, this news event will likely inject some volatility into the USD/CHF pair. With a strong figure predicted for the Economic Barometer, the Swiss Franc may be able to give the Dollar some competition in trading tomorrow. Of course, with the Dollar continuously proving its resilience, traders will have to wait and see how competitive the Franc can be.