U.S. Dollar Dominated by Two-Sided Trade

The U.S. Dollar has had a choppy two-sided trade so far this week.Currency markets have for the most part been confined to a range. Theabsence of any major U.S. economic reports until Friday’s

The U.S. Dollar has had a choppy two-sided trade so far this week. Currency markets have for the most part been confined to a range. The absence of any major U.S. economic reports until Friday’s Unemployment Report is being blamed for the lackluster, directionless trading. Furthermore, investors are sensing potential confusion over how to interpret the Fed’s bank stress test results as one reason to seek safety in the U.S. Dollar.

This morning’s better than expected ADP employment report initially triggered renewed interest in risky assets but the equity markets are having trouble holding on to pre-market gains. The report showed the smallest decline in jobs lost since June 2008. The U.S. Dollar weakened on the news but has since regained its strong pre-report status.