Wednesday, 14 Oct 2009

Euro Climbs to New High while Gold Trading Stalls

The dollar continued its losing way during the New York trading hours as the EUR/USD climbed to a new high not seen since August 2008. Traders ferociously sold the dollar as a host of positive news came from the U.S.

Banking giant JPMorgan Chase helped spark the upbeat trading session, posting healthy profits and beating Wall Street analyst's projections. Also the Federal Reserve released its meeting minutes and was met with cries of joy. Notes from the last meeting showed inflationary pressures are not apparent in the market, leading traders to believe the low interest rate environment will be prolonged. This positive news helped to rally the Dow Jones Industrial Average to pass the significant 10,000 mark, fueling risk taking and the selling of the dollar.

On this news, the EUR/USD climbed to a daily high of 1.4945. The pair has settled near the 1.4920 mark, up from an opening price of 1.4885.

The rally of gold prices has taken a breather from its astonishing bullish run. Spot gold may have hit a significant technical barrier in the $1070 price level. Currently the commodity is trading near the $1062 mark.