04-14-2011, 09:50 AM
Through Monday’s active trading session, the dollar was showing little strength – nor should it have been. Looking at the fundamental event risk on hand, there was little to dissuade traders from pushing the benchmark currency to fresh 15-month lows. In fact, with a tentative carryover of positive sentiment from the previous week and both New York Fed President Dudley and Fed Vice President Yellen arguing that there was little reason to discuss an early exit from monetary stimulus efforts now; the struggling interest rate outlook would once again falter. However, looking across the majors, the greenback’s performance was variable. Against the safe haven yen and Swiss franc, losses were early and relatively aggressive. In contrast, the European currencies would see a concerted decline while the comm bloc was move with more gusto.