The US Dollar has started this week off in a modestly bullish posture. Gaining steady ground against the EUR and GBP, the greenback, so far, has begun to test a number of psychological price barriers. Against the EUR, the dollar has climbed to 1.3860 and is holding steady as of this morning. The most ground, however, has been made against the British Pound. The buck steadily gained a solid 70 pips in the first few hours of trading today; the GBP/USD cross now trades near 1.5930, down from 1.6000.
The American economy is due to release a number of reports today which may have a moderately heavy impact on today's trading. The Personal Spending and Personal Income reports due at 13:30 GMT will carry a level of significance in today's market, but not nearly as much as the ISM Manufacturing PMI scheduled for 15:00 GMT. Forex traders won't want to miss out on these reports especially since many are forecasting a short-term downward correction for the USD in today's trading. These reports will verify that notion.
With commodity prices testing significant support lines, and with the USD's continued strength, the notion that the greenback is facing downward pressure today is hard to miss. While a number of today's economic figures seem less relevant than the American NFP report due this Friday, intra-day traders can take advantage of market expectations by following news events like today's and banking on the small corrections that are being priced into the market around these expectations.