Friday, 1 Oct 2010

Current FX Trends Extend Into Weekend

The major trends in the forex market showed little signs of weakening during Friday's trading. The US dollar was weaker versus the majors as traders continue to anticipate further quantitative easing from the Fed.

During Friday's trading, the greenback continued its downward trend. The EUR/USD climbed to its highest level in seven months moving as high as 1.3778.

Traders are looking towards the next Federal Open Market Committee meeting and are anticipating further quantitative easing from the Fed. A second round of quantitative easing may spark the US economy along with US equities, but it may weaken the dollar as the fed would effectively be putting more dollars in circulation.

Major trends continued to build on previous gains. The USD/JPY was down at 83.28, from an opening day price of 83.37. The USD/CHF was lower at 0.9757, after opening the day at 0.9801. Spot crude oil continued its climb, rising to $81.60, following an opening day price of $80.23. Gold will finish the day higher and made another record high of $1,320.28.

These trends should hold into the following week where the highlight will be Friday's US Non-Farm Payrolls report.