During this morning's European trading session we have seen the Dollar recoup a bit of its losses as the EUR/USD fell back below the key 1.4600 mark. However, this shouldn't be confused as a reversal of the recent trend. This week the Dollar has significantly weakened across the board and could be poised to continue its bearish trend through the remainder of the trading day.
Earlier today the monthly PPI Input was released by Britain with a reading of 2.2%. The measure of inflation was well above the expected 0.9% increase in prices. While typically inflationary pressures may hurt a currency, the rising prices in Great Britain can be interpreted as a sign of an improving economy coming out of a recession where prices have been falling.
USD/CAD Showing Signs of a Reversal
Traders may note the USD/CAD 4-hour chart: A bullish cross has formed on the chart's Slow Stochastic Oscillator, indicating the potential for an upward movement in the pair. It may be a good time to go long on this pair.
