| USDThe USD underwent a bullish trading session yesterday, as it appreciated against all of its major currency rivals. The Dollar rose 0.6% and closed under 1.4520 versus the EUR in yesterday's trading session, even seeing prices dip under 1.45. This Dollar rally is continuing as this analysis is being posted as the EUR/USD now stretches below the 1.4400! Also, the USD saw gains against the GBP, as the GBP/USD pair hit a 2-1/2-year low of $1.7784 before pulling back to $1.7832.The greenback saw significant bullishness yesterday as a sharp drop in Oil prices and persistent concerns about the health of other major global economies drove investors to positions supporting the greenback. The theme driving global financial markets yesterday was crude oil's tumble to as low as $105.46 per barrel in early trading, as Hurricane Gustav had limited impact on energy infrastructure. U.S. Manufacturing PMI shrank slightly to 49.9 in August from July's mark of 50.0, the level separating contraction from expansion, while inflation pressures also eased. The indicator result returned according to expectations and did not affect the dollar as much as expected due to the poor economic data from the Euro-Zone.There are few economic data releases expected to be released today from the US at 14:00 GMT with Factory Orders being the main release. The Factory Orders index measures the value of new purchase orders placed with domestic manufacturers for durable and non-durable goods. Factory Orders tend to have a low impact because it reports much of the same information contained in the Durable Goods Orders report released over a week earlier. The other economic indicator expected today, Total Vehicle Sales, is expected to slightly rise compared to previous readings but should contribute little to volatility. |
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