Monday January 25, 2010 - 19:39:04 GMT
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Dollar Trading Mixed at Mid-Session
The U.S. Dollar is
trading mixed at the mid-session with no clear theme at this time.
Traders may be choosing to stand on the sidelines or lighten-up
positions during the two days leading up to the Fed FOMC meeting on
The EUR USD is holding on to its early morning
gains at the mid-session. Gains are being limited by traders taking a
precautionary view on developments regarding the Greece budget problem.
GBP USD is strengthening since the New York opening. Oversold
conditions and position squaring are helping to boost the British
Pound. The U.K. economy is still the driving force behind this marketâ€™s
recent weakness. This market is likely to strengthen over the near-term
or until more bad economic news hits the wires.
The USD JPY is
trading higher following a volatile week which saw the Greenback lose
ground. News that Bernanke will be reappointed is helping to support
demand for higher risk assets. This market could turn around quickly to
the downside today if U.S. stock markets weaken and demand for lower
yielding assets rises. The Bank of Japan is expected to leave interest
rates and stimulus alone at this weekâ€™s meeting, but could threaten to
intervene if this currency pair drops below 90.00.
The USD CHF
is trading lower overnight after continuing last weekâ€™s late session
reversal. The chart pattern suggests that this market is likely to
continue to weaken until it reaches a key support zone at 1.0312 to
1.0269. Traders should also watch the Euro. A sudden drop in the Euro
versus the Swiss Franc could lead to renewed talk of intervention by
the Swiss National Bank.
Oversold conditions in gold, crude oil
and equities are not pressuring the USD CAD as originally forecast this
morning. Overall, this market can best be described as rangebound.
demand for commodities and equities helped to pressure the AUD USD and
NZD USD last week. The weakness was triggered by activity in China
which signaled the start of a tighter monetary policy. This move is
likely to lead to less demand for Australian and New Zealand exports.
the mid-session, firmer gold and equities are leading to light
short-covering. This week the Reserve Bank of New Zealand is likely to
leave interest rates unchanged while remaining committed to leaving
rates low until late 2010.
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