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.
As we mark time ahead of the European Central Bank's interest rate meeting tomorrow and Friday's non-farm payrolls report, the performance of the US dollar has been very mixed.
Stronger economic data and dollar supportive comments from new US Treasury Secretary Paulson helped to rally the dollar for only a brief moment before the gains were completely erased at the London close.
The summer months' lack of volatility is taking its toll on the dollar-backed majors. Point in case, the EURUSD has traded within a 40-point range over the past 24 hours.
After quiet Tokyo and London sessions for the majors, it was obvious market participants were waiting on the sidelines for the weighty US releases scheduled for the morning hours in New York.
With the soft Beige Book report continuing to resonate in the market, the dollar remained relatively subdued after the stronger durable goods and jobless claims report.
Rarely is the Beige Book report as market moving as it was today. At a time when traders are scrambling to figure out whether the Federal Reserve has enough evidence to raise interest rates again in August, the clarity of the Beige Book was exactly what dollar bears needed to hear.
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