After finding support near the 87.00 level a couple of times this month, the dollar has finally made a move higher over the last couple of sessions.
The US equities markets were really a big driver of this pair as optimism over second-quarter bank earnings were all the rage yesterday and led traders to pull back from the safe-haven yen trade. Today has proved to be a bit more of a choppy session than yesterday, however, the dollar has recently broken into new high territory and could make a run toward a test of the 89.00 level. One factor that has somewhat been overlooked though, and could dampen momentum for the dollar was the mixed report from the International Monetary Fund (IMF) regarding its outlook for global GDP. The IMF did raise its forecast for overall global GDP growth and particularly US GDP growth for 2010 and this could be considered good news and lead to increased risk appetite. The downside is that according to their indicators, the bulk of the upswing in growth has already taken place and therefore will not help things much in the latter half of the year.