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 US dollar is stronger today but the move has been primarily based upon the retracement in commodity prices rather than meaningfully strong US data.
Dollar strength was limited on the day with most of the majors making some headway from Friday’s pullback. With no economic data, the fluctuations were restrained to the current consolidation as comments from US Treasury Secretary Snow helped spark the day’s dollar weakness.
The dollar advance yesterday triggered by core inflation data couldn't hold back the resolute bears in today's session as mixed indicators and Fed chatter left the currency to the overriding bearishness held for the past three months.
With little in the way of market moving releases until next Thursday's first revision of GDP, there could be a reversion to dollar selling without influence from outside the economic calendar.
In the current market environment, the dollar never seems to be able hold onto its gains for long. The fact that economic data is far from resoundingly positive has put to question how much longer the Federal Reserve can remain hawkish.
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