the dollar goes out with a bang

The Dollar goes out with a bang.

With the summer doldrums coming to an end following the Labor Day holiday the greenback starts off the trading season with a revaluation of price, selling off throughout the European session and into the start of the US session. Traders are still reeling from the moves that began during the European session. The Dollar is now trading at some of the lowest levels of 2009 as the UN called for a replacement to on the dollars influence as the reserve currency held by most central banks. The UN Trade And Development (UNTAD) called for an end to USD dominance on the global stage by calling for the creation of a Bretton-Woods style system that would monitor currency exchange; when you break this down it is similar to requests made by China; Brazil and Russia earlier this year that would remove the US Dollar as the worlds reserve currency. Several member nations have already begun process to circumvent holding greenbacks as there reserve currency. What this means for trader and the FOREX market? The initial move probably stated it the best as the major currencies and the USD index all showed signs of significant dollar weakness. This just ahead of what many consider to be the start of selling dollars by central banks… China has talked recently of revaluating its dollar holding currently at some $2.1 Trillion dollars, the move could come as early as October.