After a harsh couple of weeks, the U.S. Dollar now appears poised to regain some lost ground against its primary currency counterparts. The Dollar had risen to as high as 1.4660 versus the EUR just two weeks ago. Now it seems the greenback has begun its ascent away from these doldrums. As of last Friday, the USD had risen to as high as 1.3850 against the EUR and continued to float near that mark during today's early trading hours.
Against the Yen, the Dollar also began to march upward as it climbed from 90.00 to 92.00 these last few days, marking a long-overdue appreciation against the recently strengthened island currency.
No doubt the news that President-elect Barack Obama announced more details about his economic stimulus plan helped the USD rebound slightly. This news, as well as the Federal Reserve's decisions to undertake the process of quantitative easing - printing money - to boost market liquidity and return to growth, will likely push the Dollar to go bullish over the next few days.
This week it will be especially important to keep a close eye on U.S. employment data. With Non-Farm Payrolls and Unemployment Claims expected to show mixed results, the movement of the USD will probably become highly volatile later in the week. As for now, look to the Dollar and the British Pound to be the primary market movers as news from these two economic giants will continue to have profound effects across global markets.