Monday, 21 Dec 2009

Dollar Continues to Strengthen

The Dollar continued to rise today against all the major currencies. The Dollar strengthened against the Euro, and the EUR/USD pair is currently traded around the 1.4275 level. The Dollar also rose to a 6-week high against the Yen, as the USD/JPY pair rose to the 91.20 level.

The Dollar advanced as global sentiment that U.S. economy is recovering, encouraging speculations that the Federal Reserve will begin to withdraw its stimulus. Also today, gold continued to drop as a result of the strong Dollar, and an ounce of gold is currently traded for $1,092.

Looking ahead to tomorrow, the most significant news publication appears to be the U.S Existing Home Sales report. This report measured the number of residential buildings that were sold during November. If the end result will reach expectations for a 6.29M figure, it is likely to support the Dollar.