Source: ForexYard
The US dollar was able to extend the boost it received late last week during trading today, as negative euro-zone news fueled risk aversion and sent investors to the safe-haven greenback. Greece’s inability to reach a debt-swap agreement with its creditors sent the EUR/USD as low as 1.3026 before the pair staged a slight upward correction. Last week’s positive US jobs report helped the dollar maintain its gains against the JPY throughout the trading day yesterday. The USD/JPY reached as high as 76.79 before a minor downward reversal.
Turning to tomorrow, USD traders will want to pay careful attention to a speech from Fed Chairman Bernanke, scheduled for 15:00 GMT. Any positive statements regarding the US economic recovery are likely to give the dollar additional momentum going into the rest of the week. Specifically, should Bernanke indicate that the US may raise interest rates earlier than planned, the dollar will likely see significant gains as a result.
Following Bernanke’s testimony tomorrow, the dollar’s next big test will likely be the weekly US Unemployment Claims on Thursday. While last week’s jobs report was promising, analysts are warning that the fluctuations in the employment number are likely to occur. Should Thursday’s figure come in worse than forecasted, the dollar may give back some of its earlier gains to close out the week.
Forex Market Analysis provided by ForexYard.
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