Archive for October 2011

The Dow Jones FXCM Dollar Index (Ticker: a href=”http://www.dailyfx.com/forex_market_news/us-dollar-index/” class=”gsstx”USDollar/a) surged more than 2% today as equity markets tumbled on renewed European debt concerns and end-of-month profit taking. However with key event risk on tap this week, the greenback is likely to remain in consolidation.
br/

The dollar has fallen just as fast as it rallied and is now almost back to August levels. This has caught the market on the wrong foot, as a general euro bearish sentiment meant that investors had been sitting on significant short euro positions. These are now being unwound ndash; explaining the speed of the correction.
br/
Kasper Kirkegaard, Senior Analyst, Danske Bank
br/

Economic activity in the U.K. is expected to expand at a faster pace in the third-quarter, and a positive GDP report should prop up the British Pound as it encourages an improved outlook for the region.br/

An exceedingly busy economic calendar points to major moves in the Euro/US Dollar, US Dollar/Japanese Yen, and other key forex pairs. We favor trading high-volatility strategies until further notice. br/

The greenback rallied across the board on Monday and the reserve currency may continue to appreciate over the next 24-hours of trading as market sentiment falters.
br/