Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.
Kathy has a Bachelors degree in Finance from New York University. Kathy has written for Stocks and Commodities, CBS Market Watch, ActiveTrader, Futures and SFO Magazine. She is frequently quoted on Bloomberg and Reuters and has taught seminars across the country. She has also hosted trader chats on EliteTrader, eSignal, and FXStreet, sharing her expertise in both technical and fundamental analysis.
With no major economic data released today, profit taking and overall short covering was the main driver of the markets. The US dollar staged a modest rally against the euro and British pound, but an earlier rally against the Japanese yen and commodity currencies were unsustainable.
For the first time since April 2003, the national ISM survey of manufacturing conditions fell below the 50 mark, indicating that activity contracted rather than expanded in the month of November.
Yesterday’s recovery in the US dollar did not last long as the greenback came under another day of severe selling pressure. Having already started the US session on a softer footing, the Chicago PMI report tipped the currency over the edge.
The last few trading days were suppose to be quiet with most US and Japanese dealers out for the holiday. However it has proven to be anything but that. In fact, we have not seen this degree of volatility in at least a month.
Traders banked their four day rolls at the close of business yesterday and began a massive liquidation out of carry trades that sent the US dollar sliding to its lowest level against the euro in 14 months.
Even though the holiday shopping season is at the top of everybody’s minds, the market could not ignore the fact that oil prices have creeped back above $60 a barrel.
The markets are already going into holiday mode as trading begins to slow. The US dollar rebounded after an upward revision to October leading indicators.
Copyright 2024 Tiger Shark Publishing LLC . All rights reserved.
It should not be assumed that the methods, techniques, or indicators presented on these websites will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these websites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
Free Festival of Traders Videos
full story
printer version