USD Trading Outlook (24-07-2012)

U.S. Dollar Trading (USD) the market was shaken yesterday by the collapsing confidence in Spain’s ability to fund its own debt. Spanish and Italian authorities announced a short selling ban on banks to try and stem the rout but this had limited effect and it took the US session for stability and a small bounce into the close. More selling is likely as Spanish 10 yr Yields continue to soar towards 7.5%. Some Support was seen in Early Asian trade on Tuesday as FED member Ruskin stated his expectations the FED would discuss QE3 at the next meeting. Looking ahead, Fed Chairman Bernanke Speaks. July Flash Manufacturing PMI forecast at 52.1 vs. 52.5 previously.