News from both sides of the Atlantic continually conflicts, leaving the markets in a ongoing state of volatility

For Forex traders focused on the dollar this week, it's an ongoing game of tug-of-war, as news from both sides of the Atlantic continually conflicts, leaving the markets in a ongoing state of volatility. 

The game may be favoring the dollar, however, after the Fed Rate announcement yesterday in which the news was positive, allaying concerns about inflation, and a general feeling that the economic slump may be turning around.  This is a key point, as recent months had focused on a number of negative factors, from the auto industry collapse, increasing unemployment, and even more recently, questions about maintaining the dollar as the world reserve currency. 

With China recently increasing it's Treasury holdings by nearly a quarter, it's safe to say that the dollar will retain its status.  Most importantly for dollar values though, it is this general sentiment which, in addition to economic news, will bolster its value. 

Forex traders are a notoriously fickle bunch, and with many major banks betting on dollar strength over the rest of the year, we could be seeing the current trend against the dollar moving in the opposite direction. 

Intraday volatility will likely remain high, leaving a lot of opportunity for the EA programmers, and those who subscribe to automated strategies, so be sure to stay tuned to the news.