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.
The greenback had plenty to be woeful about on the opening of the new week as both current account and net foreign securities purchase reports painted a rather pessimistic picture.
Although industrial production figures disappointed the market over, figures were somewhat positive for the session, giving hope to many dollar enthusiasts that the imminent slowdown maybe softer than had been anticipated.
The US dollar opened this week with a quiet, somber tone as traders in the US observed the fifth anniversary of the terrorist attacks that have made September 11 an infamous day in history.
It was dollar strength yet again on the day as traders continued to pare back positioning in dollar shorts and higher unit labor costs confirmed the still looming pressures of inflation in the US economy.
Temporary dollar strength was witnessed on the day following Monday’s observance of the US Labor Day holiday. With consecutive losses against the majors in recent sessions, the underlying greenback was due for a break.
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