U.S. Dollar Flat to Lower after ECB Decision, Weekly Claims Report

The U.S. Dollar is trading flat to lower atthe mid-session as traders remain cautious ahead of Friday’s U.S. Non-FarmPayrolls Report. Earlier this morning the Dollar showed little reaction to theEuropean Central Bank’s decision to hold interest rates steady and a slightdrop in U.S. Weekly Initial Claims.

The U.S. Dollar is trading flat to lower atthe mid-session as traders remain cautious ahead of Friday’s U.S. Non-FarmPayrolls Report. Earlier this morning the Dollar showed little reaction to theEuropean Central Bank’s decision to hold interest rates steady and a slightdrop in U.S. Weekly Initial Claims.

Jobless claims remained a concern amonginvestors because they remain at a high level. This is an indication that the U.S. economy iscooling while fueling worries that the recovery may not be sustained if privatefirms continue to refrain from hiring new workers.

The Euro is holding steady following theECB’s decision to hold interest rates steady. The market had a positivereaction to the comment from ECB President Trichet who said the recovery“should proceed at a moderate pace”.

Mortgage issues are helping to put pressureon the British Pound. A choppy stock market is leading to mixed results in thecommodity-linked currencies. The New Zealand Dollar is trading better, but theAustralian and Canadian Dollars are trading flat which may be a sign thatWednesday’s strong rallies may have been overdone.

Although the Dollar is down this week, manylarge traders and institutions have been on the sidelines due to tomorrow’semployment report and Monday’s U.S. Labor Day holiday leading to speculationthat this week’s action was due to thin trading conditions.

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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