Dollar slowly recovers as market awaits Bernanke’s Speech

[RTFX-Trading]

Overnight the greenback progress was capped trading between 1.4871 – 1.4908 against the single currency as the price of oil and concerns regarding Freddie Mac and Fannie May continue to fill the headline. As the day edged on, the dollar slowly recovers spurred by the halt in Britain’s economy and weak Euro-zone orders in June.

Unexpectedly the UK’s economy froze in the second quarter as the report on the GDP was flat. GBP/USD slips 1% on the day at 1.8595. Euro-zone’s industry new orders fall by -0.3% versus -1.1% expected. Although it came out less than expected it still sends out signals that the Euro-zone’s economy is fragile. EUR/USD fell 0.45% at 1.4832 while USD/JPY up 0.7% at 109.16.