FX Closing Comments

The Dollar had a very tough day in thin trading, as the it slid against all the majors. The Dollar losses were especially pronounced against the Swiss Franc in response to increased levels of tension with Iran. The negative sentiment and one-way price action may prove to be an aberration, as many U.S. banks were "unofficially" on holiday and Banks throughout Europe were closed. As such, tomorrow's open may be instructive in terms of the current Dollar sentiment. Rising rate expectations and firm capital inflows would seem to argue for a relatively stable greenback, though energy costs and geo-political issues continue to weigh on the minds of traders.