The USD Showed That What Goes Up Must Come Down
The greenback experienced a trading session of mixed results yesterday. Soon after the trading day began, the USD reached a 6 month record against the EUR as the pair fell to a rate of 1.4630. However, it was a straight or shall we say "strait" downfall for the USD ever since, as the cross rose to breach the 1.4800 level.

Today’s US Dollar Trading
• USD finally weakens
• Volumes a bit lower
• US news no help

Overnight Preview
• Look for consolidation
• USD likely to have a weaker bias mid-week

Looking Ahead to Wednesday
All times EASTERN (-5 GMT)
• 10:35am USD Crude Oil Inventories
Another light day for the Greenback.

Today’s US Dollar Trading
• Greenback unable to extend gains
• Volumes light
• Big news out tomorrow may have sidelined traders

Overnight Preview
• Look for two-way action, consolidation
• Possible follow-on selling in Asia to start

Looking Ahead
All times EASTERN (-5 GMT)
• 8:30am USD Building Permits
• 8:30am USD PPI m/m
• 8:30am USD Core PPI m/m
• 8:30am USD Housing Starts
• 10:00am USD FOMC Member Fisher Speaks

Overnight Asia/Europe
• Quiet start overnight, USD range-bound
• Volumes lower
• Technical trade dominates due to lack of news

Today’s Economic Reports
All times EASTERN (-5 GMT)
• 1:00pm USD NAHB Housing Market Index
Very light start to the week, light news from overseas as well.

Looking Ahead
All times EASTERN (-5 GMT)
• 8:30am USD Building Permits
• 8:30am USD PPI m/m
• 8:30am USD Core PPI m/m
• 8:30am USD Housing Starts
• 10:00am USD FOMC Member Fisher Speaks

CPI Data On Tap.
The USD completed yesterday's trading session with mixed results versus its major rival currencies. During the first half of the day, the U.S. dollar eased versus the euro and the yen after government reports showed that Retail Sales fell 0.1% in July, below the 0.5% expected by analysts. The greenback retreated from earlier gains after concerns over gasoline supply following a U.S. inventory report showed that crude stockpiles and refined product supplies fell last week, declining to its lowest levels since last 10 years.

Today’s US Dollar Trading
• USD whipsaws hard
• Volumes patchy
• GBP falls to new lows

Overnight Preview
• USD likely to consolidate
• Volumes likely to drop ahead of US data tomorrow

Looking Ahead
All times EASTERN (-5 GMT)
• 8:30am USD Core CPI m/m
• 8:30am USD CPI m/m
• 8:30am USD Unemployment Claims
• 10:35am USD Natural Gas Storage
• 2:30pm USD FOMC Member Stern Speaks

Today’s US Dollar Trading
• USD ends mixed-to-weaker
• Official names selling rallies
• Majors ready to rally

Overnight Preview
• Look for more consolidation with a lower boas

Looking Ahead to Wednesday
All times EASTERN (-5 GMT)
• 8:30am USD Core Retail Sales m/m
• 8:30am USD Retail Sales m/m
• 8:30am USD Import Price Index m/m
• 10:00am USD Business Inventories m/m
• 10:35am USD Crude Oil Inventories

Will a Bearish Correction Take Place?
Yesterday, the USD rallied against all the major counterparts. The EUR/USD dropped over 150 pips, descending below the 1.4900 level. The dollar experienced similar sessions vs. the GBP and the CHF as well.

USD looks to test 1.50.
The USD underwent a bullish trading session yesterday, as it appreciated against all of its major currency rivals. The dollar rose 0.5% and closed under 1.5320 versus the euro in yesterday's trading session. Also, the USD saw steady gains against the GBP and CHF. The greenback saw significant bullishness yesterday as the Pending Home Sales beat our forecasts which showed an expected rise of 1%. Instead, the indicator rose 5.3% and added to another day of surprising US economic data supporting the USD. The indicator was also the first real sign of housing improvement in the US in recent history. Although foreclosures are accounted for in the figure, it is nice to see some positive housing numbers out of the US to support the latest bullish trend for the greenback in Forex trading. Yesterday's numbers mark the second positive pending home sales this quarter, in June homes sales saw a 6.3% rise. In addition, the gain in pending home sales offset a bleak U.S. jobless claims report which saw a 35K rise from the expected mark of 420K. The swing in home sales, despite jobless data adds even more to the growing speculation that the housing sector has hit its bottom and will now begin to see steady growth. The data also backed expectations of U.S. rate hikes this year, which has fueled a rebound in the dollar over the past two weeks. Today we can expect a slower pace to the news cycle from the US as 3 events of lesser significance will be released. Preliminary Nonfarm Productivity and Unit Labor Costs along with Wholesale Inventories are forecasted to see positive gains, but should contribute little to volatility. If data returns inline with expectations we should see the Dollar's resurrection continue as traders will look to infuse bullish USD positions.

Today’s US Dollar Trading
• USD finds stops above yesterday’s highs
• Holds gains into the close
• Volumes on the lighter side

Overnight Preview
• Look for the USD to retrace a bit
• Quiet ahead of the rate announcements

Looking Ahead
All times EASTERN (-5 GMT)
• 8:30am USD Unemployment Claims
• 10:00am USD Pending Home Sales m/m
• 10:35am USD Natural Gas Storage
• 3:00pm USD Consumer Credit m/m
Rate announcements due from overseas also, could be a big day for the USD.