Source: ForexYard
The dollar was down on the day versus the majors as a successful 30-year Treasury bond sale helped bring down US bond yields. Traders are looking towards two key data releases in the New York session to finish the week.
Also influencing the market is the recent compromise between the Obama administration and Congress. The agreement will extend Bush era tax cuts into the next two years which has caused some economists to up their US GDP forecasts and cut unemployment estimates.
The EUR/USD was trading near its opening price of 1.3250. The USD/JPY is trading lower at 83.50 after opening the place of 83.67. The GBP/USD is higher at 1.5835, after an opening day price of 1.5778. The Aussie dollar was up at 0.9882 after opening the day at 0.9851.
Recent comments by the Euro block ministers supported the enactment of new legislation to come to a political solution for Europe’s fiscal problems and stressed the avoidance of relying on European Central Bank sovereign bond purchases.
Ireland’s government continues to debate next year’s budget. The passage of the budget is one requirement needed to receive the 85 billion euro bailout package from the EU/IMF.
New York trading will have key US economic data on tap with trade balance data due at 13:30 GMT followed by consumer sentiment numbers at 14:55 GMT. Better than expected releases could reverse the losses for the dollar. Support and resistance levels for the USD/JPY come in at 82.80 and 84.40.
Forex Market Analysis provided by ForexYard.
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