Chinese Manufacturing Data Pressures Greenback

The U.S. Dollar is under pressure against most majorcurrencies this morning following a rebound in Chinese manufacturing data. Themoves seem to be muted however ahead of tomorrow’s elections and Wednesday’sFederal Open Market Committee meeting.

The U.S. Dollar is under pressure against most majorcurrencies this morning following a rebound in Chinese manufacturing data. Themoves seem to be muted however ahead of tomorrow’s elections and Wednesday’sFederal Open Market Committee meeting.

The highlight of today’s action is the Dollar’s continuedweakness versus the Japanese Yen. Overnight the USD JPY was trading higher onrumors of Japanese government intervention, but the market turned quickly, eventuallysending the Greenback to a new 15-year low versus the Yen.

The Euro is trading flat to lower in a very choppy trade.Look for EUR USD to rally should investors continue to demand higher riskassets.

One of the big gainers this morning is the NZD USD whichpushed through the October 2009 top at .7635. Traders are saying that it’s theweaker Dollar that is driving the Kiwi higher and not any particular news outof New Zealand.Traders are said to be increasing bets on the news that the Fed will substantiallyincrease its quantitative easing program later in the week.

Demand for higher assets is also driving up the AustralianDollar ahead of tomorrow’s Reserve Bank of Australia central bank meeting.

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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