Wednesday, 16 Sep 2009

Dollar Falls to New Low

During the New York trading session the EUR/USD rate continued to climb higher, trading at its yearly high. The pair has broken the 1.4700 resistance line as has been steadily trading at 1.4720 during the afternoon lunch hours. Driving the pair higher has been the persistent notion of a global economic recovery that may not sway in the near future. This bullish trading can also be seen in equity markets as the Dow Jones Industrials Average was up a healthy 100 points.

The bearish streak the Dollar has experienced the past week and a half doesn't appear likely to end anytime soon. Many are calling this time an end to the economic recession. The weakening of the Dollar may be one of the signals that this is coming to fulfillment. As trader's appetite for risk increases, they look for currencies with higher yields, such as the EUR or the Aussie Dollar, driving down the value of the Dollar.

Tomorrow's trading will be highlighted by the release of two important economic indicators, the U.S. Building Permits and weekly Unemployment Claims. These releases could have a high impact on the trading of the Dollar denominated pairs. Will a better than expected result turn the tide with the Dollar and stop the bullish slide?