US Consumer Confidence Set to Impact Markets

The US dollar saw relatively little movement against its main currency rivals yesterday, as the combination of a bank holiday in England and a lack of US news resulted in a low liquidity environment in the marketplace. The USD/CHF fell more than 30 pips during the first half of the day to trade as low as 0.9579 before staging a slight upward correction. The pair was trading at the 0.9590 level by the afternoon session. Against the Canadian dollar, the greenback was down close to 20 pips to reach as low as 0.9893 during mid-day trading. By the end of European trading, the USD bounced back to the 0.9900 level. Today, the main piece of news in the marketplace is likely to be the US CB Consumer Confidence figure, set to be released at 14:00 GMT. Analysts are predicting the indicator to come in at 65.8, slightly below last month's 65.9. If the news comes in below the forecasted level, risk aversion may send higher-yielding currencies, like the euro, lower during afternoon trading. Later in the week, traders should not forget to pay attention to a speech from Fed Chairman Bernanke. Investors are eagerly awaiting Friday's speech for clues as to a possible new round of quantitative easing in the US, and major market volatility is expected.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard