Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

DailyFX Home / Market Alerts

Graphic Rewind: Euro Strength Erases Data Driven Dollar Gains

By Benjamin Spier
05 December 2013 18:52 GMT

Talking Points:

  • US Dollar index erases gains, as Euro rises on Draghi presser
  • The greenback remains in a 74 point range for two weeks

A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:

US Dollar 15-Minute 12:00 12/04 to 12:00 12/05 EST

Graphic_Rewind_Euro_Strength_Erases_Data_Driven_Dollar_Gains__body_Picture_1.png, Graphic Rewind: Euro Strength Erases Data Driven Dollar Gains

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Dow Jones FXCM Dollar Index will complete two weeks of trading within the 74 point range at the end of today, despite a flurry of greenback related trading over the past 24-hours.

The US Dollar fell about thirty points over the Tokyo session, but then erased those losses during the first part of the London session, despite a lack of significant news. The combination of the upcoming ECB rate decision and the US payrolls release on Friday may be moving prices, as traders prepare for big moves.

The releases of the unchanged ECB and BoE rate decisions had no major effect on trading, as the decisions were expected by analysts.

Then, the better than expected US GDP and continuing claims releases sent the US Dollar higher at the beginning of the NY session. But the dollar quickly gave up gains and fell to a two day low, as ECB President Draghi’s press conference got going. Apparently, many traders had expected Draghi to sound more dovish and possibly try to talk down the Euro, but the single currency instead jumped higher on Draghi’s less-dovish tone.

New to Forex? Watch this video

Charts created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

05 December 2013 18:52 GMT