Tuesday, 8 Sep 2009

Dollar Plummets to 11-Month Low against the EUR

The U.S. Dollar plummeted to near a year low vs. the EUR, as global stocks rallied. As a result of the weak Dollar, Crude Oil rose dramatically. Also, Gold surpassed $1000, as traders seek a currency hedge from a weak USD and potential creeping inflation. The USD also fell against the other five most traded currencies.

The EUR/USD pair soared by nearly 200 pips to the 1.4520 level. The USD slipped by a staggering 170 pips vs. the GBP to 1.6519. Also adding to the GBP's gains was optimistic manufacturing data that was published from the British economy. What's more, as the world's leading economies improve, the greenback seems to weaken.

Looking ahead to late night trading, we can expect the GBP, EUR and JPY to continue to hold onto their gains against the USD. In fact, there is a possibility that the greenback will continue declining, due to a lack of confidence in the U.S. currency. Therefore, if you want to make some end-of-day profits now, open your USD positions as soon as possible.