Dollar Tests Recent Trend

NEW YORK (TheLFB-Forex.com) -- Currency trading in Asia overnight Tuesday tested the dollar's recent divergence from trading inversely to risk markets. The dollar index moved lower to test near-term support at 80.50 as S&P 500 futures rose to test 1248 resistance. But when European markets opened, the gap higher in equity futures was enough to reinstate the positive correlation between the dollar and risk, and the earlier dollar selling was reversed. Tight trading ranges and low levels of speculative interest are allowing intraday reversals to occur, especially around the times when regional markets open and close.

Topics:  york thelfb-forex.com     currency   asia   s&p   european   tight   dollar   markets   trading   correlation   test   futures   risk   allowing   
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