The market would like to see whether the Fed will raise interest rates more than two more times.
I don't think weather issues like hurricanes can breach the trading range.
Overall, the trading is thin due to closure of the U.S. financial markets.
The trend is still consolidation for the dollar because we saw a lot of weaker-than-expected data from the States at the beginning of this year.
In the long run, this change could be seen as meaningful.
The widening trade deficit is negative for the dollar. We see no way for the U.S. trade gap to narrow.
The Nikkei's rise since July has had limited impact on the yen's upside, but for the moment anyway, stock prices are supporting the yen.
It's hard to deny that capital outflows from Japan have been driving the yen's weakness.
What we saw in Tokyo today shows that a small consolidation in the dollar is likely because of this technical resistance.
Markets are rapidly abandoning the forecast for the Fed to increase rates to 4 percent by year-end, and are instead pricing in 3.75 percent. People are worrying lofty oil prices and Hurricane Katrina might hurt the U.S. economy when weaker data continue to come out.
