Daily FX Wrap Up

Even without major economic releases, traders throughout the world still found plenty of reasons to sell-off the US Dollar. Starting out in the European session, the first order of the day was to cover Dollar-long positions that had benefited from last week’s jumpy price movement. Moving across the Atlantic, the early morning US session continued the bearish greenback pattern with a slow and steady decline. The EUR/USD pair saw a 110-pip range and a high of almost 1.3265 before a slight retracement heading into tonight’s Asian session.

The outlook for the rest of the week includes an FOMC meeting on Tuesday, which trumps almost all economic releases out of the US. Analysis will be highly focused on the event in search of commentary and market direction, as the central bank is widely expected to hold rates at 5.25 percent. The million dollar question is, “Will the Feds reiterate the topic of inflation and avoid all talk of an economic slowdown?” It is more than possible that they will send out the same statement as they did in October, which was regarded as highly optimistic and slightly unbelievable. With that being said, a good report might be the short-term remedy to cure the US Dollar of its recent weakness. XPRESSTRADE Analyst David Hilgeman