By: DailyForex.com
The U.S. Dollar suffered heavy losses during Friday’s early trading session, much of which was prompted by an unexpected sell off on Wall Street. Analysts say that market players are baffled as to how the wild trading day occurred across most market segments including currencies, equities, bonds and commodities and there is general disagreement among them as to which initial slide prompted the other markets to follow. Where there is agreement, however, is that the greenback is likely to be on the defensive for most of Friday’s trading day.
The U.S. Dollar Index had initially moved higher after the report of better than expected jobless claims but then toppled from a high of 81.943 .DXY to 81.170 .DXY. At one point in Asia, the EUR/USD pair traded at $1.3205, close to a 2-week peak for the Euro, before surging to $1.3363 and has since settled down at $1.3347. Meanwhile the USD/JPY pair was trading at 98.64 Yen and then reversed to 97.00 Yen before edging to 97.24 Yen. Analysts believe that the Federal Reserve’s ambiguity as to the timing of its quantitative easing scheme is exacerbating investors’ uncertainty.