Positive USD positions were supported by a series of events which started after the release of poor Euro-Zone fundamental data. Another help for the greenback was a drop in Oil prices as Hurricane Gustav slowly passed without causing any major damage to energy facilities in the Mexican Gulf.

Today’s US Dollar Trading
• USD fails to extend gains
• Majors make highs in New York
• BOC keeps rates firm

Overnight Preview
• Look for follow-on selling

Looking Ahead to Thursday
All times EASTERN (-4 GMT)
• 8:15am USD ADP Non-Farm Employment Change
• 8:30am USD Revised Nonfarm Productivity q/q
• 8:30am USD Unemployment Claims
• 8:30am USD Revised Unit Labor Costs q/q
• 10:00am USD ISM Non-Manufacturing PMI
• 10:35am USD Natural Gas Storage
• 11:00am USD Crude Oil Inventories
• 1:40pm USD FOMC Member Fisher Speaks

The Dollar rose 0.6% and closed under 1.4520 versus the EUR in yesterday's trading session, even seeing prices dip under 1.45. This Dollar rally is continuing as this analysis is being posted as the EUR/USD now stretches below the 1.4400!
The greenback saw significant bullishness yesterday as a sharp drop in Oil prices and persistent concerns about the health of other major global economies drove investors to positions supporting the greenback.

Today’s US Dollar Trading
• Most of the action was this morning
• USD holds gains but weakens into the end of day
• Traders note profit-taking bids in the majors

Overnight Preview
• Likely a bout of short-covering due
• Quiet ahead of US data

Looking Ahead
All times EASTERN (-4 GMT)
• 7:30am USD Challenger Job Cuts y/y
• 10:00am USD Factory Orders m/m
• All Day USD Total Vehicle Sales
• 2:00pm USD Beige Book

Low Volatility Expected In Observance of U.S Labor Day.
Last week, the USD went through some choppy waters while showing mixed results against the majors. The greenback gained a respectable 100 pips versus the EUR closing at 1.4670, also making strides against the GBP and CHF. The USD did experience some bearishness against the JPY, due to a strong news week by the Asian powerhouse. Last week's results were driven largely by strong US economic indicators, as positive data pushed the Greenback. Housing sector figures were surprisingly positive, as both Existing and New Home Sales, pushed the market toward favorable Dollar sentiment. Traders also saw a bullish dollar following an unexpected rise in Core Durable Goods, and what took many by surprise, a 3.3% rise in quarterly GDP.

The USD is On Its Way Down Ahead of the GDP Figures.
The greenback saw mixed results versus its rival counterparts during yesterday's trading session. The USD initially retreated from recent highs against a basket of rival currencies caused mainly by a rise in Oil prices, as well as another round of concerns over the U.S. healthcare and banking system. The USD pared losses after a report showed that US Durable Goods Orders for July rose by 1.3% causing the USD climb against its counterparts immediately after the results were published. However, despite the positive release the USD continued its decline shortly after hawkish comments several ECB executives that helped the EUR rebound from a 6-month low versus the greenback.

Today’s US Dollar Trading
• USD fails to extend overnight strength
• Volumes better
• Stops close-in result in two-way action

Overnight Preview
• Look for more two-way action
• USD is getting “tired” I think

Looking Ahead to Wednesday
All times EASTERN (-4 GMT)
• 8:30am USD Core Durable Goods Orders m/m
• 8:30am USD Durable Goods Orders m/m
• 10:35am USD Crude Oil Inventories

With New Home Sales on Tap Will EUR/USD Test 1.4550?
Intra-day gains in the dollar on a better-than-expected U.S. Existing Home Sales report tended to be short lived even though stabilization in the U.S. housing market is seen as critical to ending some of the concerns on the U.S. economy. The dollar finished yesterday's trading session with mixed results versus the major currencies while staying relatively unchanged against the EUR ultimately closing at 1.4709.

Today’s US Dollar Trading
• The USD unable to hold gains in NY
• Volume a bit better than Friday, stops drive a lot of trade
• Oil pushes Greenback around as do equities

Overnight Preview
• Look for tow-way action overnight
• USD may be overextended to the upside so expect downside bias

Looking Ahead to Tuesday
All times EASTERN (-5 GMT)
• 9:00am USD S&P/CS Composite-20 HPI y/y
• 10:00am USD Consumer Confidence Index
• 10:00am USD New Home Sales
• 10:00am USD HPI m/m
• 10:00am USD Richmond Manufacturing Index
• 2:00pm USD FOMC Meeting Minutes

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.