By TraderVox.com
The US dollar extended its recent bearish trend during yesterday's trading session, as positive data out of Australia and China led to an increase in risk taking.
The EUR/USD hit a one-week high at 1.3175 during the afternoon session, while the AUD/USD moved up well over 100 pips over the course of the day. Against the Japanese yen, the dollar erased gains made during overnight trading. By the end of the European session, the USD/JPY had once again dropped below the 81.00 level.
Turning to today, a batch of US data is forecasted to generate market volatility before markets close for the week. The Core CPI figure, scheduled to be released at 12:30 GMT, is forecasted to come in at 0.2%. If true, it would represent a slight increase over last month and may result in dollar gains.
The same can be said of the Prelim UoM Consumer Sentiment figure, which is forecasted to come in at 76.5 when it is released at 13:55 GMT. Traders will also want to pay attention to a speech from Fed Chairman Bernanke. Any mention of additional quantitative easing by the Fed Chairman may result in dollar losses.
Article provided by TraderVox.com
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