Previous session overview On Thursday, the dollar rallied impressively after the head of the European Central Bank proved more cautious about future rate hikes than many investors had expected. With U.S. financial markets closed Friday for Independence Day, the greenback ended the shortened New York session up significantly against the euro, yen and most other widely traded rivals, after the labor data. The ECB chief said he would decline to pre-commit to any future rate moves, adding that

Previous session overview On Wednesday, the dollar was knocked down by a weak U.S. private-sector jobs report and worries from European Central Bank President Jean-Claude Trichet that inflation there may “explode.” Those expectations helped push the euro to as high as USD1.5889 Wednesday, a 10-week high and not far from its lifetime high of USD1.6020. EURUSD rallied through resistance at 1.5850 as Oil jumped higher. May PPI came in strong at 1.2% m/m confirming inflation fears in the Euro

Previous session overview On Tuesday, the dollar declined modestly against the euro despite a better than expected ISM report on the U.S. manufacturing sector, as more record-high oil prices depressed overall sentiment for the greenback. EURUSD closed in NY Tuesday at USD1.5792/95, having seen a late rally to USD1.5827 on reported US Paulson comments (after a meeting with ECB Trichet), easing back to USD1.5773 as Wall Street moved into positive territory before closing at the mentioned level.

Previous session overview On Monday, the dollar rose slightly as less volatile oil prices and U.S. stock markets improved sentiment, though a lack of major U.S. economic data prevented any notable moves in the buck. Mostly, traders just held their positions as they waited for an important U.S. employment report for June and an interest-rate decision by the European Central Bank, both of which are due at the end of the holiday-shortened U.S. week. The Euro found trading above 1.5800 temporary

Previous session overview On Friday, the dollar fell to three-week lows against the euro and yen, as falling U.S. stock markets and record-high oil prices sullied the outlook for both the greenback and the overall U.S. economy. On Friday, EURUSD entered calmer waters and settled in rather tight 1.5720/80 trading range, at least until a late session dollar selling spree pushed it close to the 1.58 level. EUR/USD closed the session at 1.5793, up from the 1.5756 close on Thursday. USDJPY traded

Previous session overview On Thursday, the dollar endured another day of broad declines on interest rate concerns, slumping U.S stocks and rising oil prices. The Euro jumped to week highs as Oil Surged through USD140 and Gold rallied through the USD910 resistance. German May import Prices expected at 1.4% came in higher at 2.4%.EURUSD traded with a low of 1.5628 and a high of 1.5768 before closing the day at 1.5755. The euro also climbed to a record high at 169.47 versus the Japanese yen

Previous session overview On Wednesday, the dollar declined versus the euro after the Federal Open Market Committee voted to keep interest rates unchanged and the foreign exchange market concluded that it gave no signal of a near-term rate hike. After a two-day policy meeting in New York, U.S. Federal Reserve Chairman Ben Bernanke largely kept the world’s financial market guessing about his medium-term intentions for interest rates. Bernanke left interest rates unchanged at the meeting saying

Previous session overview On Wednesday, the dollar declined versus the euro after the Federal Open Market Committee voted to keep interest rates unchanged and the foreign exchange market concluded that it gave no signal of a near-term rate hike. After a two-day policy meeting in New York, U.S. Federal Reserve Chairman Ben Bernanke largely kept the world’s financial market guessing about his medium-term intentions for interest rates. Bernanke left interest rates unchanged at the meeting saying

Previous session overview On Tuesday, the dollar weathered a decline versus the yen and euro on a dismal June consumer confidence report, and stayed within recent ranges ahead of the close of the Federal Open Market Committee meeting. The dollar’s range bound trading has lessened currency market volatility, encouraging the carry trade strategy. As a result, the euro hit an 11-month high Tuesday of Y168.38. The Euro strengthened against the US dollar thanks to stronger economic data from

Previous session overview On Friday, the economic calendar was empty, but this didn’t prevent EUR/USD from moving higher throughout the session. At least for now, the global uncertainty due ongoing high oil prices and renewed credit woes was seen as (slightly) dollar negative even if the losses on European stock markets recently were even more pronounced than for most US indices. In the current environment of low economic and financial visibility the interest rate support is apparently also a