Source: ForexYard
The US dollar was able to recover some of yesterday’s losses during morning trading today, as investor’s attention began shifting from the expansion of the Fed’s bond back program back to the ongoing “fiscal cliff” negotiations. A lack of progress in the negotiations between US Congressional leaders and President Obama led to risk aversion among investors, which in turn boosted safe-haven assets.
The EUR/USD has fallen close to 40 pips since the beginning of the European session, and is currently trading just above the 1.3050 level. The GBP/USD fell some 35 pips before reacing as low as 1.6115. The pair is currently trading at 1.36133.
Looking toward the rest of the day, dollar traders will want to pay close attention to the US Retail Sales and Core Retail Sales figures, both set to be released at 13:30 GMT. If either of the indicators come in above their expected values, the greenback may be able to extend this morning’s bullish trend.
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