Daily Forex Analysis by Finexo.com 10/11/2009

The G20 met on Monday and pledged to keep emergency stimulus spending in place until a global recovery is assured. This moved investors out of the US Dollar and into the higher yielding currencies as well as the stalwart Euro and British Pound. The declaration by the G20 members was interpreted as an affirmation that interest rates will remain low for some time, a situation that leaves an abundance of cheap money to buy stocks, commodities and other currencies.
At 11:00PM GMT, the US Dollar was trading down 1% to the Euro to 1.4992, down 1.75% to the Canadian Dollar to 1.0565, down .85% to the British Pound to 1.6751, down 1.2% to the Australian Dollar to .9297, down 2.24% to the New Zealand Dollar to .742 and down .89% against the Swiss Franc to 1.008. The Dollar did rise .18% versus the Japanese Yen to 90.01.
Overall, the Dollar has fallen to its lowest level in 15 months against a basket of currencies, on its way to its largest single day drop in half a year. The ICE futures Dollar index was trading last at 75.145, down 1.05% on the day.

EURGBP trying to make a new foray to the downside today, but will likely need a good look at Wednesday’s Quarterly Inflation Report before any decisive move can be made. NOte the approaching 200-day moving average to the downside.


Written by Finexo.com