Dollar beginning to Mount Turnaround

The U.S. Dollar is trading mixed against the majorcurrencies but slowly showing signs of a turnaround. After showing strengthagainst the Euro overnight, the Dollar weakened because of the poor retailsales report, but this pattern appears to changing ahead of the equity marketopening.

The U.S. Dollar is trading mixed against the majorcurrencies but slowly showing signs of a turnaround. After showing strengthagainst the Euro overnight, the Dollar weakened because of the poor retailsales report, but this pattern appears to changing ahead of the equity marketopening.

The British Pound is posting the strongest gain because ofimproving jobs data. Yesterday’s investor optimism seems to be fading astraders seem to be taking protective action.

Although the Euro is trying to turn positive, some concernshave been raised because of a report stating that eleven Euro Zone banks mayfail their stress tests. In addition, a report is circulating that Spainborrowed a record amount of money from the European Central Bank in June priorto the expiration of its funding program in July.

The hint at weaker U.S. equity markets is starting topressure the commodity-linked currencies as traders begin to show signs ofslowly shedding risk. Early morning activity hints that today may be a volatileday highlighted by a two-sided trade.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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