September 25, 2012
Put your hands up in the ayer for the dollar! Its performance in yesterday was pretty stellar, scoring wins against all of its counterparts save for the yen. EUR/USD closed the day 44 pips below its opening price at 1.2927 while AUD/USD ended the day at 1.0417 after opening at 1.0417.
There wasn't any economic report released from the U.S. Luckily for the dollar, risk aversion dominated market sentiment yesterday.
As I said in my EUR commentary, disappointing economic data from Germany hinted that the country could be headed for a recession. News that Greece might be facing a shortfall in its budget and Spain's refusal to ask for a bailout also weighed down on sentiment.
Traders seem to have there eyes on the three euro zone countries. So, make sure you're also on your toes for updates from them! More bad news could intensify risk aversion and send the dollar even higher.
Also, keep tabs on the reports that we have on tap from the U.S. today because they will probably affect the currency's price action.
At 1:00 pm GMT, the S&P house price index for July is anticipated to show that house prices increased by 1.3% during the month. Then at 2:00 pm GMT, Conference Board's consumer confidence report for September will be released. The consensus is for an increase of 63.1.
"The only cable I watch is the pound baby."