The US dollar reversed its yesterday’s moves during today’s cautious trading. The currency gained on the euro and surged against the Great Britain pound, falling versus the Japanese yen at the same time.
Some traders subscribe to the theory of Tuesday reversal. The theory says that if a move has occurred on Monday then it is often reversed on Tuesday. It is hard to say how true that idea is, but it is exactly what has happened this week.
As for economic news from the United States, today’s reports demonstrated a stable performance of the US economy. Both the trade balance and the Job Openings and Labor Turnover Summary showed little change from the previous reporting period.
EUR/USD dropped 1 percent from 1.1055 to 1.0945 as of 17:09 GMT today. GBP/USD sank from 1.5602 to 1.5427. At the same time, USD/JPY declined from 122.55 to 122.26.
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