Forex Currency----The dollar is in a low trend on Monday, for investors are looking for chances to cut long dollar position. The euro holds its gains. Forex market shifts its eye onto the continuity of US economic recovery under the impact of European debt crisis.
The dollar index .DXY reported 85.30 in early Asian trading hours, above the support position of 85.09, and hit lows of May 21st. If the dollar index keeps low and fall below 85, it may fall further. Its initial support position lies at 84.71, close to the 55 day moving average.
USD rose against the Japanese yen, slightly higher than the 5-week low of 89.21 on Friday at the electric trading platform EBS. This was mainly driven by short covering. But the dollar upside is still restrained. Because the forex market expects that some Japanese exporters will sell stocks at Tokyo fixing session.
A veteran US bank dealer indicates that some forex personnel are still interested in the trend of RMB afterG20 Summit. But the major focus would be transferred onto the American employment statistics to be released later this week, which is helpful to understand American economy and USD trend.
USD rose 89.32against the yen JPY, 0.1% up.----Forex Observation
By Amanda
