USD Trading Outlook (11-05-2011)

U.S. Dollar Trading (USD) lost ground as bulls took back control and lifted stocks, commodities and most FX majors higher. The market found support from solid Chinese trade data and news of a major M&amp A deal. US Imports Prices increase 2.2% m/m to 11.1% y/y as commodity prices lift import costs. In US stocks, DJIA +75 points closing at 12760, S&amp P +10 points closing at 1357 and NASDAQ +28 points closing at 2871. Looking ahead, March Trade Balance forecast at -47bn vs. -45.8bn previously.

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