USD Graphic Rewind: Spain and Italy Set the Tone for the Week
2 GMT MarketScope Chart Created by Adrian Robles
FXCM US Dollar Index (ticker: USDollar) rose 10 points on the news that Italy and Spain banned shorts-selling. The ban in Span will be in effect for the next 3 months, the duration of Italy’s ban is uncertain, but will be in place for at least a week. It is not certain what affect these bans will have on the market, although equities around the world have declined on the news and the US Dollar continued to rally. After the advances seen in the first half of the trading day the USD looked as if it was ready for some short-term correction then Moody’s changed it’s outlook for Germany, Netherlands, and Luxembourg to negative. The result in the US Dollar Index was a retracement forming a hammer like candlestick pattern.
The negative news flowing out of the Euro-Zone today came ahead of the IMF and ECB inspectors’ arrival in Athens. It is likely that their findings will be closely followed by market participants, and will drive the risk trend for the currency market this week.
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