Friday, 10 Sep 2010

Dollar Tumbles against the Majors

The U.S. dollar fell against most of the major currencies during today's morning session. The dollar erased most of yesterday's profits vs. the euro, and the EUR/USD pair is now trading around the 1.2730 level. The dollar dropped about 100 pips against the British pound as well.

The dollar slipped today as recent economic data releases have managed to, at least temporarily ease concerns from a slowing global growth. In addition, analysts have recently released their forecast regarding the German investor confidence, claiming that it rose to its highest since January 2008 in August.

The positive data and expectations are boosting demand for riskier assets, such as the euro and the pound. The rise in stocks and equity markets also contributes to the dollar's weakness, and it seems that as long as global economic data will indicate a global recovery, the dollar might drop further.