USD Trading Outlook (28-11-2011)

The US dollar edged higher against a basket of currencies on Friday supported by a heightened risk aversion in the market. Versus the Japanese yen, the dollar rallied to 77.79 from 77.16. On Monday, Bank of Japan Governor Shirakawa warned that the Japanese economy will remain slow as Europe’s debt crisis escalates and signaled that the central bank will remain ready for further monetary stimulus if needed. Focus now turns to the US New Home Sales expected at 15 GMT.

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