Daily Forex Analysis by Finexo.com – 05/11/2009

The US Dollar dropped on Wednesday against most majors after a sharp rise in equities and commodities stole the Dollar’s safe-haven appeal. The downturn happened as investors waited for a policy decision from the US Federal Reserve Bank. The Fed left rates unchanged as promised, helping fuel the flow into riskier investments. On the day, the ICE futures, which measures the Dollar against a basket of 6 major currencies was down to 75, down from the month high of 76.8172.

At 12:00AM GMT, the US Dollar was down .98% to the Euro to 1.4866, down 86% to the British Pound to 1.6569, down .23% to the Canadian Dollar to 1.0628, up .86% to the Australian Dollar to .9101 and down 1% to the Swiss Franc to 1.0154. The Dollar did rise .42% against the Japanese Yen to 90.67.
Chart: USD/JPY

A potential upside down head and shoulders formation here if the rally continues, which it may if bonds are unable to find support through the end of the week. To the downside, a close below the 21-day moving average (in blue) is important for the downside view.


Written by Finexo.com