U.S. Dollar Weaker, but Closes off Low

The U.S. Dollar lost ground overnight in reaction to thenews that the G-20 couldn’t offer any support to the ailing Greenback. After aninitial thrust to the downside, profit-taking was able to drive the Dollar off itslows.

The U.S. Dollar lost ground overnight in reaction to thenews that the G-20 couldn’t offer any support to the ailing Greenback. After aninitial thrust to the downside, profit-taking was able to drive the Dollar off itslows.

Today’s action indicates that while the Dollar is stillweak, it may just sit in a range versus the major currencies until the FederalOpen Market Committee’s statement on November 3.

Although traders expect the Fed to formally announce plans fora new round of quantitative easing, traders are still not sure how much and howit will distribute the money. Since Fed Chairman Bernanke confused traders in aspeech a little over a week ago, traders have been tentative about takingaggressive long positions against the Dollar. The only exception to thisstatement is the Japanese Yen.

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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