David Forrester, Senior Vice President for G10 FX Strategy at Macquarie, says weak U.S data, especially in the labor market, hurt the greenback in recent days.
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There is a reasonable probability the U.S. dollar index will fall below 74.50 and retest the lower edge of the base of the symmetrical triangle pattern near 72.50. Traders will look for a consolidation pattern to develop between 72.50 and 74.50.
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Checking in at the NYSE to see how traders are investing in the current market, with Steve Grasso, Stuart Frankel director of institutional sales and Warren Meyers, DME vice president of floor operations.
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The euro held above a seven-month low against the greenback in Asia on Tuesday after a whippy session overnight saw a wave of short-covering lift it more than two cents on hopes that China will bolster Italy by buying its bonds.*
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The euro and dollar both struck record lows against the Swiss franc in Asia on Monday while gold reached new highs as investors sought safety from debt problems plaguing the European Union and United States.
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The euro languished at one-week lows versus the dollar in Asia on Thursday, faced with little recovery prospect as worries about European sovereign debt problems outweighed a widely expected interest rate hike by the European Central Bank.
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Gold was off lows on Friday as the dollar eased with a bounce in the euro on news Greece has reached a deal with international lenders on an austerity plan, but traders were keeping an eye on the currency market.
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Market volatility and uncertainty in the euro zone are limiting the options for the Swiss National Bank (SNB), which held rates at the historic low of 0.25 percent Thursday, Chairman Philipp Hildebrand told CNBC.
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