What the Heck Happened to the Dollar?! | Forex Blog: Piponomics: "Profit-taking ahead of next week's events
While risk appetite and QE3 prospects are good candidates for the dollar's plunge, could it be the other way around and traders are actually closing their open positions ahead of the potential market-moving events next week? Some technical traders believe that the high-yielding currencies were simply oversold, and that traders are taking off their short positions before the week ended.
Aside from the euro zone finance ministers' meeting held last Friday, the finance ministers from all of the 27 EU countries will also have a big meeting this weekend. Between tomorrow and the bigger Economic Summit scheduled on Wednesday, we'll probably hear more rumors and speculations that lead to choppy price action.
But it doesn't stop there! Other big economic reports are also scheduled for release next week, including the BOJ, BOC, and RBNZ's interest rate decisions, China's HSBC manufacturing PMI, and the U.S. GDP report."
'via Blog this'
