Throughout much of 2010, the US economy has been on a steady recovery. Now that recovery is slowing, however, the dollar may be at a turning point. Wages are steadily on the rise, which may cause an increase in household spending over the next few quarters, hopefully improving consumer confidence in the long run and boosting the dollar. On August 3rd, the dollar weakened against many of the majors. Dow Jones jumped by 1.99% and NASDAQ strengthened by 1.80%. Gold closed at $1,185.4 per ounce with a 0.1% gain, and crude oil closed at $81.34 per barrel after posting a 3% gain. As can be expected from such a transitional period for the dollar, forex trading is likely to be volatile.

The euro was able to strengthen against the dollar as the EUR/USD pair traded at a low of 1.3055 and a high of 1.3195. This is a three-month high against the dollar. The British pound also marked its highest level against the dollar in six months. The GBP/USD pair traded between 1.5700 and 1.5907.