Forex Blog: Currency Trading News & Analysis.

January 20th 2006

Economic Data, Bin-Laden Tape weigh on USD

Earlier this week, a video tape of Osama Bin Laden was discovered, in which the Muslim leader warned of further terrorist attacks in the US. Originally, the news of the tape was thought to have contributed to the Dollar’s decline. In hindsight, however, it seems the tape merely provided an impetus for the USD to move in the direction that it had already been headed. This week witnessed a few releases of economic data, separately revealing that the housing market is continuing to slow while the labor market is tightening. Overall, the effect on the USD seems to be neutrals, as traders insisted that USD movements this week were related to technical, rather than fundamental factors. The Wall Street Journal reports:

“The bin Laden news helped move the market in the direction it was already going, but the market movements bring back thoughts that we might be in a range between $1.2050 and $1.2150,” said one analyst.

Read More: Dollar Edges Higher Against Rivals

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