Tuesday, December 29, 2009
The U.S. Dollar fell overnight as traders took advantage of the thin, holiday trading by taking profits after the almost month-long rally. Demand for higher yielding assets also
contributed to the weakness for the second day in a row buoyed by a rise in global equity markets. Finally, some of the selling pressure can be attributed to concerns over rising debt in the U.S.
Losses may be limited in the Dollar today due to the thin trading conditions and the release of a pair of positive economic reports. Investors expect today’s S&P/Case-Shiller
October Index of Home Prices and Conference Board confidence report to reaffirm the turnaround in the economy.
The developing chart pattern suggests that the Dollar is vulnerable to a substantial correction before fresh buying resurfaces.
The March Euro is up overnight boosted by a report which showed rising prices in Germany. The European Central Bank expects inflation to rise over the near-term, but remain under its
2% annual target. A new main bottom has been formed at 1.4217. The chart pattern suggests that …
