* Dollar's First Advance in Six Days is an Anemic One
* Euro Benefits from Quiet Markets on Slovakia Vote, Greece Review
* British Pound Looks to See If Labor Data Can Offer More Volatility than Posen, GDP Forecast
* Japanese Yen Congestion Against US Dollar Extreme - Be Prepared for a Breakout
* Australian Dollar: Consumer Confidence May have Notched Higher, But Risk Trends Haven't
* Canadian Dollar Receives Little Encouragement from Jump in Housing Starts
* Gold Fails to Capitalize on Technical Break, European Crisis Pressure Easing
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Written by: John Kicklighter, Senior Currency Strategist
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| Dollar's First Advance in Six Days is an Anemic One |
| Market conditions are feeble. This is not a reflection on direction for any specific asset or currency but rather a state of being for the level of volatility and conviction behind risk appetite trends. Without a higher level of activity and a market susceptible to shifting sentiment; fundamental developments are easily glossed over and meaningful trends remain out of reach. This was something of a burden for the greenback through Tuesday's session as a round of potentially negative developments for capital markets wouldn't translate into traction and meaningful progress for the FX market's more extreme-leaning safe haven. The combination of a stalled risk run, tempered conviction and concerning updates on Europe's financial situation was enough to lead the Dow Jones FXCM Dollar Index (ticker = USDollar) to its first positive close in six trading sessions; but it was essentially a 'tick' higher. This was the same exact scenario for the greenback's most liquid pairing (EURUSD) - though there was slightly more progress to be found with the risk-sensitive AUDUSD and NZDUSD; while GBPUSD stood as an outlier with a 0.6 percent tumble... |
Best regards,
DailyFX Research Team
research@dailyfx.com |
21:06
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