Japan is signaling that they're not concerned about the pace of the decline in the yen, so people are going to continue to push the yen lower. Japanese investors are continuing to buy bonds abroad and we see more scope for yen weakness.
There's concern about this Tropical Storm Rita. People are watching that a little bit more closely, given Katrina and its impact on the market. There's some unwillingness right now to take aggressive positions.
Japanese investors are continuing to buy bonds abroad, and we see more scope for yen weakness.
The market expects the Fed to be hawkish towards inflation. If they highlight there is a greater inflation risk further out, then there is room for the dollar to push higher against the euro.
The trade release has reminded the market of the structural weakness of the dollar.
The dollar rallied a bit in Asia, which was largely due to Rita, but there doesn't seem to be much follow-up.
The dollar has shown a very disappointing reaction to U.S. data this week.
The riots in France will have impacted confidence over Europe and we're also seeing key technical levels being broken, pushing the euro lower.
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