The December E-mini S&P 500 is trading in a narrow range overnight after Irish debt worries dragged down the market on Tuesday. Traders seem to be waiting for news from Brussels where officials from the European Union, International Monetary Fund and European Central Bank are meeting to come up with a solution for the country’s continuing banking sector risks.
The AUD USD is trading in a tight range overnight. Volume has been light and the market is trading inside of Tuesday’s range. Unless this pair continues to break lower, a tight trading range usually suggests impending volatility which may mean the start of a short-covering rally.
Stable U.S. Equity Markets Help Limit Dollar Gains
Overnight the Dollar climbed sharply higher as global investors dumped stocks and commodities on concerns that Dubai World’s debt problems would escalate into a worldwide credit crisis similar to the one the U.S. faced when Lehman Brothers collapsed in 2008. Fear raced through the global investment community, making lower-yielding assets such as the Dollar and the Yen more attractive.