U.S. Dollar Higher, but Giving Up Some Gains

The U.S. Dollar is trading higher at themid-session but giving back some of its earlier gains.

The catalyst behind today’s strength isfresh worries about sovereign debt issues in the peripheral Euro Zone. Tradersare keeping an eye on developing debt problems in Ireland that pose a minor threat atthis time to the developing strength in the Euro Zone economy.

The U.S. Dollar is trading higher at themid-session but giving back some of its earlier gains.

The catalyst behind today’s strength isfresh worries about sovereign debt issues in the peripheral Euro Zone. Tradersare keeping an eye on developing debt problems in Ireland that pose a minor threat atthis time to the developing strength in the Euro Zone economy.

Traders are using this news as an excuse topare their long Euro positions, but one can argue that the surprise strength oflast week’s U.S. jobs data may have been the trigger for today’s weakness.

At this time the Euro is still in anuptrend on the daily chart, but this pattern could be threatened shouldconditions worsen in Ireland.Also contributing to this morning’s weakness was news that German industrialproduction missed pre-report guesses.

All of these events should keep thepressure on the European Central Bank to refrain from removing stimulus fromthe economy and leaning toward a tighter monetary policy.

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

Disclainer: