July 4, 2012
Despite yesterday's positive data, the dollar's price action was as mixed as my Uncle Joe's famous barbecue sauce on the charts. It scored a 30-pip win against the pound and a 29-pip win against the yen but it gave up 21 pips to the euro and 15 pips to the Swiss franc.
Factory orders for May rose by 0.7% and completely erased the decline incurred in April. The figure also topped expectations which was for a modest increase of 0.1%.
Some analysts say that the Greenback's scorecard reflects the market's excitement for the 4th of July festivities. A handful of market junkies might have decided to close their open positions ahead of the U.S. holiday while others might have already set their orders for the much-anticipated NFP report on Friday.
So if you're trading, keep in mind that today is a holiday in the U.S. and we could see lower volume in the market. Happy 4th of July, y'all!
"The only cable I watch is the pound baby."