Wednesday, 18 Nov 2009

Dollar Continues its Drop against the EUR

The dollar fell against most major currencies on Wednesday as dealers took profits on the currency's biggest rise in three weeks, with fresh data doing little to alter the view that U.S. interest rates will remain at record lows well into 2010. In addition, two reports showing slightly higher-than-expected U.S. inflation and a slide in new home construction helped cap EUR gains below $1.50.

The Dollar is currently trading lower against the EUR by nearly 70 pips at 1.4950. It is also trading lower against the CHF, as traders feel that the U.S. currency is an unstable bet for today.

As the U.S. market comes to a close, the USD may continue to weaken further, as forex traders feel that the USD is a risky bet for today. As a result, a fear about the Dollar's instability has led Oil to rise over $1. If today's trend continues, then the USD may be in for a bumpy week as a sell-off of the Dollar may hit full-force.