US Dollar: Is This the Long-Awaited Recovery or a Temporary Bounce?

There was plenty of data and US-based event risk this past week to suggest to the casual observer that the dollar was running on its own fundamental strength; but experienced fundamental traders should notice something was amiss. Though there were particularly hawkish comments from voting Fed member Kocherlakota, a better-than-expected non-farm payrolls report and a strong manufacturing activity survey; these developments don’t tap into the larger fundamental drivers behind the greenback. Typically, the catalysts that can lead to meaningful dollar (bull) trends are: broad risk appetite; interest rate speculation and relative growth (return) potential. Yet, all three of these have offered only modest support to the greenback recently. Fueling a dollar rally in their absence though is an unfamiliar motivator – aggressive euro selling. Will this indirect strength keep the dollar buoyant? Will one of the usual themes step in to keep the currency’s momentum? Regardless of what takes up the dollar’s call; the market seems to be far more aware its positive features.

FOREX: Dollar Making Slow Progress on a Recovery as Capital Markets Slip through Data Low

Where the dollar was struggling to curb its consistent losses and post that desperately needed bullish close Monday, the currency would post a more comfortable gain through this past trading session.

Mid-Day Report: Dollar Back Under Pressure after Brief Recovery

The boost from Bin Laden's death to dollar was rather weak and brief. The greenback is back under some mild pressure against Euro and Aussie even though it's still staying above recent low for the moment. ISM manufacturing index dropped less than expected to 60.5 in April while price paid

US: ISM - Shifting Into Expansion from Recovery, Prices an Issue

The “headline” ISM index moderated from 61.2 in March to 60.4 in April (top chart). The basic message is that the factory sector continued to expand at a strong pace in April with 60 plus readings for production, new orders, export orders and employment. The headline index has been above

Forex: Dollar Recovery Hits a Road Block as Data Prints Strong and Risk Appetite Rallies

Though it was not a dramatic change from the circumstances we were experiencing through the end of last week, the US dollar showed an exceptional level of volatility through the opening 24 hours of the trading week. Now, the trading community must determine whether this is a sign that the New Year has encourage a resolution of increased activity amongst its participants or whether trading conditions are simply still distorted.