NEWS / Trade Policy

Dollar slips in week with most U.S data in line

By Stéphane Marie - ACM Senior Trader Yesterdays News and Events: The Dollar ended the week on a soft note on Friday, slipping against the Euro and Yen after a slew of U.S. economic data did little to change the outlook for no further rises in the U.S. interest rates through the year. The Dollar made a fleeting move higher after a report showing August payrolls growth was slightly above expectations, but soon gave up those gains as a wave of short-covering ahead of the long holiday week-end petered out. The job reports was one of many economic indicators last week that landed not too far from market forecasts, giving investors little choice but to latch on to Federal Reserve??™s prevailing view that slowing economic growth will moderate inflation pressures down the road. Todays Key Issues: U.S. and Canadian markets are closed today for the Labor Day holiday. The Risk Today: Dealers say today??™s holiday and a light data calendar keep volume light. The Dollar-Yen slipped below its 117.06 right at the start of the Asian session and is continuing heading south then on. Euro-Yen also headed lower from the start of the session, adding further pressure on Dollar-Yen, although the cross is managing to find support at the psychological 149.50. Euro-Dollar hit a $ 1.2867 high, capped by talk of strong selling interest from $1.2880, the region where last week??™s rally also stalled. Resistance and Support: EURUSD GBPUSD USDJPY USDCHF 1.2950 K 1.9195 S 118.45 T 1.2595 S 1.2920 S 1.9160 T 117.50 S 1.2450 T 1.2880 M 1.9100 M 117.05 P 1.2350 M 1.2860 1.9075 116.50 1.2280 1.2810 S 1.9060 M 116.35 T 1.2250 T 1.2785 K 1.9010 S 116.00 S 1.2200 S 1.2725 M 1.8990 K 115.75 K 1.2186 K S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot