Dynamics
volatile during the trading position of the dollar did not change on the basis of past days. This pair of EUR /USD after falling below the 1.3900 area returned to 1.4000, pair GBP /USD after the short-fall back to 1.6090 to 1.6300 mark, and the pair USD /CHF after growth again fell to 1.1950 to 1.0850. Japanese yen continued to strengthen. This pair USD /JPY fell to 94.60, but order was restored above 95.00, a pair of EUR /JPY back to 133.00 after falling below short-term 132.00. Commodity currencies traded in narrow ranges against the dollar. Thus, the pair AUD /USD is below 0.8000, a pair NZD /USD recovered above 0.6300, a couple of USD /CAD is kept above 1.1600.
Causes
At the outset of bidding and the European session the dollar strengthened, reflecting the deterioration in investor relations to the prospects for global economic recovery and reducing the propensity to take risks. However, at the North American session, it had almost completely lost its position. These non-ISM index were higher than forecasts, adding that optimistic sentiment and put pressure on the dollar, and, moreover, the U.S. stock indices have moved in positive territory, which also spurred sales of the dollar.
At the same time, in a more favorable situation than the dollar, Japanese yen is that against the background of the reluctance to risk significantly strengthened its position against other major currencies.
What to expect?
On the whole, against the background of the absence of significant events and data, it is unlikely that the U.S. will be able to leave the established ranges. In addition, in Italy on Wednesday to begin the summit of Eight, which also does not contribute to activity. Market participants are likely to closely monitor any comments of the leaders of the Group of Eight on the status of the dollar as reserve currency, and before the start of the summit, to be cautious.
Today in the United States is not expected to publish the important macroeconomic data. In this regard, the data will attract investors from the UK industrial production data from Germany on the orders in the manufacturing industry. These indicators are able to support the European currency, if they will show signs of recovery in the economies of these countries.
What is fear?
As the situation surrounding the U.S. dollar has not changed and remains uncertain, the high volatility is still the main risk.
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