USD Trading Outlook (23-09-2011)

U.S. Dollar Trading (US) surged against a number of currencies to trade at multi-month highs, as increased risk aversion prompted demand for the dollar as a safe haven. Global share markets slumped following fears the US and European economies were at risk of heading into another recession. US share markets took a beating on Thursday with the Dow Jones down 391 points (-3.51%), NASDAQ down 82.50 points (-3.29%) and the S&amp P down 51.97 points (-3.29%). Despite initial jobless claims only falling by 9K jobs to 423K, concerns of a global slowdown highlighted by poor HSBC Chinese PMI reading of 49.4 (Previous 49.9) during the Asian session of trade, ensured equity markets worldwide ending their respective trading days heavily in the red trading at 13month lows. All focus will be on the G20 Summit held in Washington this weekend, with preliminary reports in Friday&rsquo s Asian morning, indicating a commitment to co-operation on the Euro Debt crisis.