No US economic data was released this morning explaining the listless action in the US dollar.  Traders are hesitant because they know that things could change dramatically with the three event risks tomorrow that could shake up the US dollar.

The combination of soaring oil prices and problems with Fannie Mae and Freddie Mac triggered sharp volatility in the equity and currency market.

The currency market was fairly quiet today with the US dollar rallying against some currencies and falling against others.

In a week devoid of any significantly market moving data, there has only been one clear factor driving the US dollar – stocks.

The sharp drop in oil prices has helped to strengthen the US dollar.  Pending home sales dropped more than expected, but it has failed to put a dent in the greenback which continues to follow equities higher.  The dollar is becoming a safe haven bet as the Federal Reserve reminds us that they will be the lender of last resort.

The rollercoaster ride in the stock market also hit the currency market today.

With the stock and bond markets closed for Independence Day in the US, the foreign exchange market was extraordinarily quiet.

Non-farm payrolls were right in line with expectations, triggering a broad based dollar rally.  How much further can it rise?

The US dollar has weakened ahead of the June non-farm payrolls report. According to payroll provider ADP and Challenger Gray and Christmas, the US labor market deteriorated significantly last month.

The US dollar has been driven higher by big reversals in the stock market and in the manufacturing sector.