Monday, 8 Mar 2010

Dollar Falls on Economic Optimism

The yen and the dollar fell on Monday as last week's above-forecast U.S. jobs data was seen boosting global economic recovery prospects, lifting investor demand for risk and higher-yielding currencies. The Dollar is currently trading lower against the EUR by nearly 30 pips at 1.3660. It is also trading lower against the GBP and CHF.

EUR also gained after supportive comments by key policy makers eased some concerns about the high debt levels of Greece and other euro zone countries.

Gold rose towards $1,135 on Monday as the dollar fell against the EUR and crude oil maintained its strength, although some resistance emerged around that level. Further gains could be on hold for the rest of the day, however, as investors await news that will provide clues to the state of the global economy.

Today is a quiet news day for the U.S. as there are no major economic data releases on the calendar today. However, Canada and Britain appear to be releasing the bulk of today's news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.