Dolla dolla bill yo! The USD has been dominating this week, posting gains against most majors once again. The EURUSD pair fell to 1.4706, a level it hasn’t reached in two weeks.

Risk aversion was rampant yesterday, as the new home sales report came in worse than expected. The report printed that the annualized rate of new home sales was at 402,000, much worse than the expected 443,000. This was due to a 3.6% decline during the month of September and are down 7.8% from a year ago.

Also released yesterday was data on durable goods orders. Orders rose by 1.0%, which was close to expectations of 1.2% gain. Core durable goods (goods excluding transportation) however, rose by 0.9%, higher than forecast of 0.6%. It was the fourth time in six months that durable goods rose.
Dollar Forex Info

Still, the mixed results left traders unsure, letting dollar buying dominate the markets. The skeptic in me asks, could this just be a run of profit taking as we close out the month? Can this dollar buying be sustained? We may get a clue from tonight’s trading session, as some high impact reports are on deck.

Unemployment claims data will be released at 12:30 pm GMT. It is expected that initial jobless claims for last week will be at 522,000. Also, US Treasury Secretary Tim Geithner will be speaking about system regulation before the Financial Services Committee. Traders and investors will be on the lookout for what he may say – I suggest you do the same!

Lastly, the Advanced GDP report is due at 12:30 pm GMT. It is expected that the US economy grew by 3.2% in the last quarter. If this comes out any worse than expected, could we see the USD continue to strengthen? Take a look at my recent blog post to see my thoughts on this.