Sun, 09 Sep 2012 22:00:00 +0000

All Eyes on Thursday's FOMC Statement

The US dollar tumbled against virtually all of its main currency rivals on Friday, after a disappointing jobs report indicated a further slowing down in the US economic recovery. The USD/JPY fell close to 100 pips after the news was announced, eventually reaching the 78.01 level. The pair was able to stage a minor upward correction to reach 78.21 before markets closed for the weekend. Against the Swiss franc, the greenback dropped more than 140 pips during afternoon trading, eventually closing out the day at 0.9445. This week, the dollar see further losses if the Fed decides to initiate a new round of quantitative easing to boost the US economic recovery when they meet on Thursday. In addition, traders will want to pay attention to several potentially significant US indicators set to be released over the coming days. Tuesday's trade balance report, followed by the PPI figure on Thursday and retail sales data on Friday, could all result in the greenback extending its recent losses if they come in below their expected levels.