Today’s sample of Forex Analysis from ForexHound.com

The U.S. Dollar opened down and remained lower against most major Forex markets as traders seemed to reassess Friday’s employment report while brushing aside today’s jump in ISM Non-Manufacturing and the unexpected surge in pending home sales. Instead of supporting the Dollar because of its traditional relationship with the economy, investors instead took interest in stocks and Dollar-denominated commodities.

Some traders blamed the Treasury’s decision to postpone a ruling on whether China manipulates its currency for the weakness in the Dollar. They felt that the move was designed to defuse political tensions enough for the Chinese government to allow the Yuan to strengthen.

The Dollar seemed to hold its ground versus the Euro. At the close the EUR USD finished lower. The strength in the U.S. economy was enough to weaken the Euro substantially along with the developing lack of confidence in the Greek financial bailout proposal. Traders may also be reluctant to take a position in the Euro ahead of Wednesday’s European Central Bank meeting. The consensus believes the ECB will leave interest rates unchanged and hint that rates will remain low until the Euro Zone recovery is sustainable.

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