Dollar has a good day on the exchange

The dollar had a good day on the exchanges despite poor economic data and a rally in the oil price.

The news that there had been progression on the 700billion dollar bailout overrode all the bad news and dollar began a new resurgence. Initially the dollar had come under pressure across the board with many dealers casting doubt over the terms of the rescue package and whether it would be enough to stave of recession in the US.

Sterling was the worst hit out of the majors as cable failed to hold the 1.85 barrier on the way back down and ended the day trading around 1.8350 level.

So far this morning, we have seen German import prices come down on a monthly basis but remaining the same year on year. The only other data of any significance is this afternoon when the US release their GDP figure at 1.30 UK time, which should remain around the same mark as last month. The Michigan sentiment figure which is predicted to rise to 71 from the previous monthly figure of 63 is due a little later at 2.55 UK time.