The USD continued to lose ground to the EUR and GBP on Thursday and this came as Wall Street turned in a rather mixed performance. U.S. data was poor yesterday as weekly Unemployment Claims were worse than estimated and the Philly Fed Manufacturing Index missed its forecast by a wide margin. The numbers from the States yesterday suggests that the jobless problem is not going to go away anytime soon, and may be around much longer than the government has been suggesting. The downward Philly Fed outcome will not be welcomed either as the manufacturing sector has shown signs of stress too. There will be no major economic data from the States leaving investors with a tricky patch of trading to examine and traverse today.
The USD has sold off this week continuing its decline since last Friday. However, traders going into today’s session will have to be aware for any type of reversals that could begin suddenly. A contrarian would note that with so many analysts saying that the USD should be performing stronger against the EUR currently, that it may actually be wise to continue to short the greenback. Trading is certainly not a one way avenue and it could not be expected that the USD would only gain against the EUR, even as the Sovereign Debt crisis continues to be a main story. Going into today’s last session before the weekend, it appears that the equity markets are rather nervous, taking into consideration that there has been very little in the way of optimism regarding growth for any of the international economies. Recent releases from the U.S. point to a troubled recovery and while that may be a reason for some USD weariness, trading tends to be a more complex web than surface issues. We could see a test of the Greenback’s ranges today.
Written by bforex.com