Tuesday 16th November: No respite for dollar

The dollar continued to trade near lows, with traders showing no respite despite strong retail sales figures from the US up 0.2% and overlooking disappointing GDP figures from the Eurozone. The dollar remained subdued, trading close to 1.2950 against the euro and falling to fresh multi month lows of 105.50 against the yen.
The major crosses traded close to their previous crosses, as markets largely ignored John Snows policy of a strong dollar. Traders remained focus on the outcome of the G-20 Finance Ministers meeting in Berlin, and possible intervention from Eurozone and Japanese officials to curb the rapid pace of appreciation.
Sterling moved marginally lower against the dollar but hit fresh month lows against the euro in anticipation of weak data releases from the UK.
Oil prices fell further to $45.60 per barrel, but bounced back marred by terrorist threats in Iraq.
The Dow and Nasdaq saw little action yesterday after having touched an 8-month high on Friday. Albeit concerns over disorderly fall in the dollar in the G-20 meet, traders are expected to continue dollar sell off focusing on structural imbalances in the US.