Thursday, 28 Apr 2011

USD Sinks against Majors

The dollar fell to a three-year low against major currencies on Thursday on the Federal Reserve's intention to keep interest rates near zero, while softer-than-expected U.S. jobs and economic data underscored the bearish sentiment. The Dollar is currently trading lower against the EUR by nearly 100 pips at 1.4850. It is also trading lower against GBP and CHF.

Ultra-loose U.S. monetary policy has been a bane for the dollar and a boon for the euro, which is up nearly 11 percent against the U.S. currency so far this year. In addition, Data on Thursday showed the U.S. economy grew less than expected in the first quarter and initial weekly jobless claims rose more than forecast.

Tomorrow, forex traders cannot afford to overlook, a batch of data is expected from the leading economies. Both the German Retail Sales and US Personal Spending will be released at 6:00 GMT and 12:30 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.