FXstreet.com (London) - Dollar strength slowed during this session, despite Asian markets also trading bearishly. The Greenback dropped against all its major pairs heading to the end of the session. Dollar longs could be closing and profit taking ahead of the weekend, and the soft Christmas week that awaits after the weekend.
Across the major pairs, the performance of the Dollar this session was as follows: EUR/USD 1.4388/89 (+0.36%), USD/CHF 1.0393/01 (-0.77%), GBP/USD 1.6205/10 (+0.34%), USD/JPY 89.43/46 (-0.54%).
This is a change from the ever-extending Dollar rally, which Valeria Bednarik, collaborator at Fxstreet.com describes: Optimism over the U.S. economic recovery pushed dollar higher since past Asian session, after FOMC statement on Wednesday, slightly more hawkish than usual, when FED raised expectations that the end of the central bank's crisis policy is approaching; with dollar strength, bad data coming from other major's economies, trigger the break out rally we are seeing…
Greenback will likely continue to soften in European and US Friday session, as market players close positions ahead of weekend, and continue winding down risk ahead of the two long weekends we have coming. No major news releases are expected Friday.