FOREX TRADING WITH DOLLARS

Meanwhile, Wall Street suffered further declines on Tuesday with Dow Jones industrials down 226.47 points, or 1.62 percent, to 13,716.95. The British pound was also weaker against the dollar, falling back from 26-year highs on Wednesday. The Beige book and weekly mortgage application figures were also due Wednesday.
However, the fate of the dollar for the day remained far from certain as further evidence of a continued slowing in the housing market could offset the upward trend, even though risk aversion in credit markets is giving some support. The dollar ended Tuesday at 121.16 but the early signs on Wednesday were positive as expected, unchanged from June in July. The US dollar began a tentative recovery on Wednesday despite reaching a new low against both the euro and the sterling on Tuesday. The dollar ended Tuesday at 121.16 but the early signs on Wednesday were positive as the market awaited US housing data that would shed some light on the state of the country’s mortgage market. The US dollar began a tentative recovery on Wednesday despite reaching a new low against both the euro and the sterling on Tuesday.
The euro was not as positive as the market awaited US housing data that would shed some light on the state of the country’s mortgage market. The US currency finally began to make a recovery against euro, falling below the $1.38 mark.

MARKET COMMENTS ON FOREX

In any case, a more two-way market is likely to develop before long. A no-cut decision today could see a sharp brief rally in GBP crosses. The GBP would likely spike sharply lower on a surprise cut, but would probably then rally sharply from lower levels as the heavy GBP short position has to start considering the idea of profit taking soon. The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus.
The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus. The GBP would likely spike sharply lower on a surprise cut a bit higher perhaps than consensus. We rate the chances for a surprise cut a bit higher perhaps than consensus. The ECB press conference today is critical for determining whether the market tips its hat to Trichet's resilience with a EUR Rally or whether it disapproves of the pain from tight credit on this overly debt-burdened economy...