US Dollar Faces Another Plunge, How Will Fundamentals Shape Things?
Fundamental Outlook for US Dollar: Bullish – Existing home sales see a record increase in July thanks to deflated prices through foreclosures, inventories – Fed Chairman Bernanke offers a cautiously optimistic outlook among his peers at Jackson Hole – Will the dollar topple or has resistance set the stage for a true reversal? The US dollar ended this past week in a precarious position. After four consecutive days of selling pressure (the currency’s worst trend since the end of May), the greenback once again finds itself within arm’s reach of its yearly lows. The market has flirted with renewing the dollar’s bear trend for nearly two months now. It is only a matter of time and speculation before the world’s reserve currency finds direction once again – especially as the global recovery gathers traction and the scales between risk and reward tilt towards higher returns. In determining what may be the ultimate catalyst for a renewed trend, we have to determine what traders are more concer
