Monday, December 21, 2009
The U.S. Dollar backed off a 3-month high overnight as volume began to dry up ahead of this week’s Christmas holiday. The relatively empty economic calendar along with holiday volume
has the potential to create volatile trading conditions.
The March Euro is trading higher overnight. Traders will be monitoring Greece’s deficit problems as well as reassessing the possibility the Fed will begin tightening its monetary
policy. Dubai debt issues may resurface today which could be a surprise for traders. Dubai is meeting with creditors to renegotiate credit terms. Look for the Euro to weaken if negotiations fall
apart.
The March British Pound is trading weaker. The chart indicates the next potential downside target is 1.5980. Traders are repositioning ahead of tomorrow’s Final Third Quarter GDP
report. Economists’ are guessing an upward revision to -0.1% from an earlier guess of -0.3%. This figure will be a positive for the British Pound and indicate that the U.K is getting ready to return
to growth during the 4th quarter.
The Dollar is trading slightly better against …
