The Dollar gained back some of its losses from the week on Friday, after stocks failed to build upon their big gains on Thursday, after a data release showing the economy grew in the third quarter. 

Since the Dollar was heavily sold off in October, fund managers needed to buy back the greenback to maintain hedge ratios at the end of the month.  As Friday was the last trading day in October, this was widely seen as the reason for the jump and less to do with any prevailing economic data.

 

The Dollar opened up this week’s Forex session on a down note, reinforcing the theory about Friday’s jump. 

This week can prove to be a crucial one for the US with consumer confidence, factory orders and jobless numbers coming out in the middle of the week. 

Even with the positive growth in GDP last quarter, analysts are concerned as much of the boost can be directly attributed to government sponsored programs which incentivized consumers to buy goods.

 

At 4AM GMT, the US Dollar is trading down .25% to the Euro to 1.4755, down .07% to the Japanese Yen to 90.0, down .55% to the Canadian Dollar to 1.0784, down .42% to the Australian Dollar to .9034 and down .35% to the Swiss Franc to 1.0225.

  

The USD/CAD changing direction violently on a daily basis these days. This week’s mix of data could help underline the uptrend or tell us whether we’re stuck in a range of consolidation. This 1.0800 area has been a sticky one in the past. The move well back into the area above 1.0590 suggests that a structural low is in place until proven otherwise.

 

A move above the local trendline would help underline the bullish case, though 1.10+ is needed to get more traction on a bullish argument. We would also likely need crude oil well back below the recent 77 dollar a barrel mark for that eventuality.