The US Dollar Is under Selling Pressure

The dollar slipped against most major currencies, continue a long-term decline after a correction with profit taking in the previous session. At the moment the dollar is trading around the levels of 1.4605 against the Euro, around the levels of 110.80 against the Yen and around the levels of 2.0690 against the sterling.

The Japanese currency fell from an 18-month high against the dollar after comments from Japan's prime minister abruptly ended the unwinding of carry trades that had pushed the unit higher in recent days.

For the moment, the rapid ratcheting down of risk appeared to be over and the market continued to maintain bets against dollar strength, though they have shrunk since last week.

After Japan's Prime Minister stated that the yen was appreciating 'too fast' and speculators need to 'be careful,' the US dollar has risen against the yen and yen carry has rebounded sharply,” it seems that the JPY is again under selling pressure against the major currencies”, said from Finotec Team..

The Euro edged up 0.5 percent from late Monday, to $1.4602 , lifted partly by a more than 1 percent rise against the yen to 161.10 yen. The Euro was only a few cents away from last week's record high of $1.4752,. The New York Board of Trade's dollar index was down 0.2 percent to 75.817.

U.S. interest rate futures still fully expect the Federal Reserve to cut rates another quarter-percentage point to 4.25 percent next month. Technical, there’s still a huge proportion of the market that is short the dollar and investors back to trade with the primary trend.

Investors are worries about the U.S. economy continued to drive trade. Today, the U.S. government will release its October retail sales report, which will be examine for any signs that weakness in the housing sector has hurt consumer spending. Publication of any number that will be lower than 0.2% will cause to a new selling flow.

Today's Economic Events