FX Update- USD
The greenback is carrying a strong bid tone into the afternoon session thanks largely to the downward reversal in energies, which has boosted USD despite elevated market tension surrounding the sustainability of Freddie and Fannie. The USD advance has slowed shortly into the lunch hour as it now faces several important test levels vs. other majors currencies including EUR/USD at 1.47, GBP/USD at 1.86, USD/JPY at 110 and USD/CHF at 1.10. Without the benefit of European trade this afternoon, USD is likely to linger around the aforementioned levels and should seek guidance from other markets including energies and equities.