Wednesday, 19 Aug 2009

Dollar Sinks on Equities Rally and Crude Oil Inventories

The U.S. Dollar sunk today against the EUR and Japanese Yen for several reasons. The greenback already showed some weakness today against the 2 major currencies prior to the U.S. market opening. However, a stock market rally in the U.S., led by energy and pharmaceuticals led investors to sell their Dollars and by equities. Additionally, the Crude Oil Inventories publication at 14:30 GMT showed that the figure decreased by 8.4 million barrels, the biggest drop in over a year. This put additional downward pressure on the USD.

The GBP/USD pair currently stands unchanged at 1.6537, as Britain and the U.S. continue to print money. The EUR/USD pair is currently trading higher by 110 pips at 1.4253, as traders pour their money into the EUR. This is despite poor data from the Euro-Zone today. The greenback is currently trading lower by roughly 70 pips vs. the JPY, extending 2 weeks of losses against this currency. These losses may continue as late night trading kicks in. In order to make some big money from these current trends, it's advised that you open your USD positions now.