Source: ForexYard
The US dollar had a particularly strong day today following negative news out of both Japan and the euro-zone. News that Japan has logged in a trade deficit for the first time since 1980 caused the USD/JPY pair to jump more than 100 pips throughout the day. Meanwhile, fresh concerns regarding Greece’s sovereign debt drove EUR/USD down, virtually erasing gains made at the beginning of the week.
Meanwhile, investors largely shrugged off news that the US Federal Reserve is unlikely to hike interest rates until the beginning of 2014. The dollar has found significant support as of late, largely because of negative international indicators. Investors continue to view the USD as a safe-haven asset. With the euro-zone still in extremely fragile position, traders can expect the dollar to remain at its current level for the near future.
Turning to tomorrow, a batch of news out of the US may generate significant market volatility. Traders will want to pay attention to this week’s Unemployment Claims figure and the most recent New Home Sales report for clues as to the state of the US economic recovery. With both indicators predicted to come in positive, the greenback may be able to extend its current bullish run as we begin to close out the week.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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