USD Making Strong Gains against Exotic Currencies

By IBTimes Staff Reporter | May 21 2010 3:31 AM

The US Dollar has seen mixed results these past few days. Against its primary rival, the EUR, the greenback has been in a mild downward corrective pattern; falling back down to as low as 1.2645 against the 16-nation single currency. On the other hand, the USD has risen against most of the more exotic currencies by significant leaps and bounds.

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Against the Australian Dollar, the buck has risen from a low of 0.9400 just two weeks ago to now trade below 0.8200. A comparative rise can be seen against the New Zealand Dollar, with an increase from 0.7320 to 0.6667. The USD/CAD likewise went from just under parity to now trade 700 pips higher at 1.0698. The flight away from riskier assets appears to be benefiting the USD significantly.

A heavy amount of market uncertainty remains at the moment. The European Monetary Union, in conjunction with the IMF and European Union, has taken steps to strengthen the Euro-Zone. However, this measure has only served to temporarily halt the EUR's recent downturn. Whether or not it can fix the larger issues remains to be seen.

Today we will be experiencing a flurry of market activity. The Euro-Zone, Switzerland, and Great Britain are all scheduled to release a vast string of data releases which should fill in many of the gaps which traders feel uncertain about at the moment. Today's data may help clarify the direction of the market for next week. Traders won't want to miss out on these movements.