* Dollar Left to Drift after EU Summit, Traders Look to 3Q GDP
* Euro Enjoys Volatility but Suffers for Direction as EU Plan Filled with Holes
* Japanese Yen Anchored by Risk Trends, Awaits Possible BoJ Changes
* Canadian Dollar Completely Retraces Tuesday Tumble Despite BoC Outlook
* New Zealand Dollar Puts in for a Cautious Climb after the RBNZ Holds
* British Pound Weathers Data to Follow European Concerns
* Gold Notches its First Four-Day Rally Since August's Push to Record Highs
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Written by: John Kicklighter, Senior Currency Strategist
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| Dollar Left to Drift after EU Summit, Traders Look to 3Q GDP |
Traders were looking for a straightforward plan to come out of the extended EU meeting Wednesday (whether it was ultimately encouraging or not). With risk appetite trends tied into this global fundamental threat, there would be no escaping the headline-prone event. This was especially true for the US dollar. As the market's last bastion for liquidity and the primary counterpart to the Euro; the greenback was heavily vested. So, as the masses slowly began to realize that there wouldn't be any definitive guidance on the world's most prominent financial crisis (at least not during the active trading hours Wednesday); the dollar would find itself anchored to key levels against man of liquid counterparts. There is little doubt that this is dangerous position to leave the currency and general risk trends in. After a sharp but questionable swell in speculative positioning; there is an acute need for a catalyst to keep optimism building. On the other hand, the uncertainty also discourages longs from unwinding exposure and prevents speculative shorts from diving back in. We are in the eye of the storm...
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Best regards,
DailyFX Research Team
research@dailyfx.com |
19:21
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