* Dollar Traders Itch for a Reversal but Heavy Risk Aversion Needed
* Australian Dollar Promises to be a Top Market Mover with RBA Decision
* Euro has Won Breathing Room but Italy Trouble and ECB Meeting Keep Pressure
* Canadian Dollar Suspect on Rates and Risk Faces GDP and Employment Data
* British Pound will Put its Own Fundamental Bias against the EU Litmus Test
* Japanese Yen Attraction to Record Highs Demands Heavier Policy Artillery
* Gold Finishes out its Best Week Since January 2009
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Written by: John Kicklighter, Senior Currency Strategist
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| Dollar Traders Itch for a Reversal but Heavy Risk Aversion Needed |
| Finally a sigh of relief for the greenback - not from a meaningful rebound, but simply finding some peace in the quiet of the weekend. From its abrupt October 4th reversal, the Dow Jones FXCM Dollar Index (ticker = USDollar) has dropped four consecutive weeks and 6.6 percent. We are still on track to seeing this dollar gauge's worst monthly performance on records going back to January 1999. Fundamentally, the momentum behind the currency's dramatic tumble is certainly excessive; but its bearings are fitting, especially when we look at its role in the speculative hierarchy. Referring to its relative performance through the week, we note that the dollar's worst showing was against the high-yielding Australian and New Zealand currency's; while the Japanese yen and British pound came out with the most reserved gains. This suggests risk appetite was the culprit in the dollar's tumble, not underlying economic developments. And, that is the same track we will follow next week... |
Best regards,
DailyFX Research Team
research@dailyfx.com |
21:26
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