05-27-2009, 11:26 AM
Although the U.S. dollar opened the NY session on a stronger footing, it remains very weak. All of the major currency pairs such as the EUR/USD and GBP/USD are trading near their year to date highs. However based upon the weekly Commitment of Traders report, speculators have been very short dollars and the lack of buyers on the sidelines is preventing the EUR/USD from staging a meaningful break above 1.40. We still believe that the currency pair will break above that level in the near future.