Dollar bulls on a sprint!

Talk about dollar bulls sprinting!!

US GDP came out stronger at 2.5%. Seemed like lots went down yesterday. North Korea shelling South Korea saw the start of the movement down, for many of the currency pairs, especially dollar-yen.

Euro on the other end traded to a low of 1.3359, after S&P cut Ireland’s rating to A.

It just seemed like yesterday, that everything was going in favor for the USD. Irish troubles and the Korean troubles brought out more risk aversion and pushed the dollar higher. On top of that the US GDP came out better than expected.

I still think we’ll be seeing more risk aversion happening, so I would still look to sell on rallies on the Euro.

Data Today:

German IFO business climate – 9am GMT

German IFO expectations – 9am GMT

UK GDP – 9.30am GMT

US durable goods order – 1.30pm GMT

University of Michigan confidence – 2.55pm GMT

US new home sales – 3pm GMT

US house price purchase index – 3pm GMT