Fed Comments Could Ignite Dollar's New Dawn

Overnight, the EURUSD fell and then bounced against its bull channel’s lower trendline recording a present value of 1.4758 - see chart.

New Dollar strength can be largely contributed to Bernanke comments hinting at a possible rate hike should the US economy begin to display serious growth signs.

This morning, the Italian Industrial Production registered a record increase of 7.0% helping to produce a EURUSD rally in the last couple of hours.

GBPUSD retracted below 1.6000 despite the UK PPI input posting a decline of only 0.5 in September.

The USDYEN has also retreated from overnight highs sitting presently at 89.01.

In the near term, the dollar may begin to benefit from more Fed hawkish comments if economic weaknesses, especially unemployment, start to subside.