US Dollar Bullish as Euro Zone Struggles with Debt Woes

The US dollar has continued to make gains against most of its currency rivals in trading as we head into this week's start. Though the USD is gaining ground on the euro, the blame lies not on US strength but in euro zone weakness. The EUR failed to break above key resistance levels and promptly dropped as a result, pushing the EUR/USD pair back towards 1.4375 as of this morning. The GBP/USD underwent a similar bearish twist, as the pair spiked up over the past week to trade near 1.6385 before coming down gradually this morning, trading right at the 1.6300 price mark at 6:00 GMT. The greenback was also able to push higher versus the Japanese yen, as the island economy continues to struggle with reconstruction efforts meant to stave off further nuclear disasters. With a light news day ahead, traders will likely be watching the series of speeches being delivered from members of the Federal Open Market Committee (FOMC) as they speak about regulatory reform, risk management and economic outlook. Each of these speeches carries the potential to affect currency values as speculators attempt to analyze any hints at interest rate changes.

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

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