Monday, 14 Sep 2009

Dollar Fails to Recover as the EUR/USD Reaches 9-Month High

The Dollar dropped to its weakest level against the Euro this year as record low borrowing costs turned investors to sell the USD and to buy higher yielding assets outside the U.S.

With the beginning of the trading day, the Dollar rose against the Euro on concerns that a tariff dispute between the U.S and China may damage the global economy recovery, reducing demand for higher-yielding assets. However, as the day continued, the greenback lost all its gains, and even fell to a 9-month low against the Euro, as the pair reached the 1.4650 level.

Looking ahead to tomorrow, a batch of data is expected from the major economies. The British Consumer Price Index, the German ZEW Economic Sentiment, the U.S Retail Sales reports, the U.S Producer Price Indices and a speech by the Federal Reserve Chairman Ben Bernanke. All this promises hefty volatility in tomorrow's trading, which will lead to many opportunities to gain high profits.