U.S. Dollar Lower after Early Volatility

The U.S. Dollar is expected to open lower against most majorcurrencies after failing to hold on to overnight gains from the Asian session.

The U.S. Dollar is expected to open lower against most majorcurrencies after failing to hold on to overnight gains from the Asian session.

Shortly before the New Yorkopening, investors seem a little reluctant to be short the Greenback as financeministers from the Group of 20 nations meet in South Korea.

Comments from U.S. Treasury Secretary Timothy Geithnercontinue to be market movers. In a letter to other G-20 members, he saidcountries shouldn’t use competitive exchange-rate policies and that exchangerates should reflect economies.

His latest quote directed toward his G-20 counterpartsreads, “commit to refrain from exchange-rate policies designed to achievecompetitive advantage by either weakening their currency or preventingappreciation of an undervalued currency.”

His comments supported the Dollar early in the session, butit has since given up the gains. Volatility is a little higher because tradersare trying to decide whether to follow Geithner’s comments or continue to focuson the size and shape of the Fed’s quantitative easing program.

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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