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the dollar takes a dive

The dollar took a hit today (23 June, 2009) and some traders said it went a bit too far, but the usd is likely to go down tomorrow with more U.S. data on the way. The housing data may take on more importance than usually expected tomorrow especially if overnight trading is sideways.

The U.S. economy may be in better shape than expected, but still with a long way to go. Weaker equities in the middle of the day had a negative impact on the dollar. Most of the currency pair action was in the EUR/CHF today which caused the USD/CHF to drop the hardest to a low point of 1.0642. 

Gloomy news spooked the markets on the 22nd and that news hit European markets to the downside. But the European Central Bank will offer unlimited credit at the ECB rate of 1% for 12 months. The demand is expected to be huge. This gave the EUR the turnaround today. Interesting to see what takes shape tomorrow, despite the U.S. news. Just maybe the U.S. news won't matter. Yeah, right! 

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