The unbroken optimism in the stock markets and the growing trust for the global economy brought the USD to its lowest levels of this year. Inflation is feared in the US, where the monetary and fiscal expansion was the earliest and mightiest, compared to other nations. But inflation must not spiral out of control just because of monetary expansion of a nation, even not then when it is the biggest economic power in the world. There are other factors playing an important role, too, like capacity utilization, work force etc.
Nevertheless, the USD is under pressure because generally the fourth quarter historically is the weakest period for the Dollar. We also see a lower USD towards the end of the year, if the crucial support levels are reached and broken on the downside.

We therefore limit our actions for today only for possible upward corrections in the USD because of its oversold situation.
See below the major currency pair's list for the details.

By George Clement


Intraday Market Outlook for Day Traders

EUR/USD
Stronger again this European morning, the Euro is about to test the
resistance at 1.5050. We expect a correction in today's trading leading to levels around 1.4980, which we would consider as a buying opportunity.
GBP/USD
A sharp fall in early European trading hours brought market down to levels
around 1.6400, which we think will hold in today's trading. On the other side, we do not see much upside potential before this week's close today.
USD/CHF
The Dollar is testing the important support of 1.000 against the Swiss Franc today, currently trading at 1.0050. We would not be sellers at this low level, and will wait for an upward correction to 1.0450.
USD/JPY
The Dollar continued its strength against the Yen in early European trading, right now at 91.55 after highs around 91.91. We see the upside potential rather limited
for today's trading.