No News Day Weakens Dollar
The U.S. Dollar traded most of the day in a range and finished lower. With the lack of major economic news this week, global investors were forced to worry about another round of U.S. debt. Throughout the week, the Treasury is going to add to its already massive debt pile by another $118 billion.
Aside from the debt worries, trading is thin and lifeless ahead of the New Year holiday. One can only speculate as to where the Forex markets want to go, but without major player participation, large movements are expected to be muted throughout the week. Technical factors could drive the Dollar lower because of overbought conditions. Chart patterns indicate there is room to the downside before the Dollar hits meaningful support.
The EUR USD is up slightly near the close. A new main bottom was formed at 1.4217. The chart pattern suggests that upside momentum may be building for a possible run at 1.4680 over the near-term. Concerns over U.S. debt issues are encouraging traders to lighten up their short Euro positions.
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