USD Leveling-Out against Majors

By IBTimes Staff Reporter | February 09 2010 5:52 AM

The US Dollar has steadily risen over the past few days, with other regions experiencing continual weakness from economic woes. Yesterday's price movements gave little indication of direction for the greenback, however, as the price seemed to enter a consolidation trend against the majority of its primary currency rivals.

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Against the EUR, the Dollar gained only moderately from 1.3677 to 1.3620, and similar results against the Pound, finishing the day near 1.5600. As of this morning, on the other hand, the USD appears to be in a mild decline as part of the consolidation taking place since last Friday. Analysts are beginning to anticipate a dramatic price movement sometime early this week.

Today's news events may not create the spark necessary to push the USD out of its currently flat trend. The Investor's Business Daily's TechnoMetrica Institute of Policy and Politics (IBD/TIPP) is publishing its monthly Economic Optimism report. While not traditionally carrying a heavy impact, it is the most significant release coming out of the United States today and could therefore have a greater impact. Should today's news be USD positive, the consolidation of the Dollar against its primary rivals could come to an end and the bullish movement of the greenback may likely continue.