The dollar fell against most of its major counterparts Tuesday after data showed Non- Manufacturing PMI fell in June, raising doubts about the U.S. economy and causing investors to reduce exposure to risk. Analysts are concerned the U.S. would not grow in 2010 as anticipated earlier in spite of fiscal packages introduced during 2009-2010. These concerns are turning the U.S. Dollar weaker against its major counterparts.
The EUR/USD cross is actually currently trading higher by 60 pips today at 1.2600 levels. Against the Yen, the Dollar is trading lower by 30 pips at around 87.50 which served as a significant support line. The AUD and CAD were among the biggest gainers yesterday and closed trading at $0.8488 and 1.0560 respectively.
Today is a quiet news day for the U.S., as there are no economic data releases on the calendar today. However, Japan and Euro-zone appear to be releasing the bulk of today's news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.