Dollar Falls versus Basket of Currencies
The U.S. Dollar closed lower against a basket of currencies as appetite for risk drove traders away from the lower yielding Dollar into the higher risk currencies.
The strong trend against the Dollar was set overnight when the Reserve Bank of Australia surprised most analysts with a 0.25% rate hike. A story then began circulating that a group of nations including Saudi Arabia and China had begun secret talks to replace the Dollar as the crude oil pricing mechanism. Traders reacted to both of these news events by selling the Dollar.
The move by the RBA sent a signal to the markets that the Asian-Pacific Region may be in a better position than the U.S. and Europe to mount a strong recovery out of the recession. In addition, some traders believe the Euro Zone is in better shape than the U.S.
- Traders Unscripted: Ashraf Laidi in "Meet the Masters" Series
- Ashraf Laidi Interview Outtake - FOMC & Obama's State of the Union
- AfraidToTrade.com's Corey Rosenbloom Webcast: Inter-Market Relationships - Stocks, Bonds, Rates, Currency, Commodities
- FINZ Futures EP.6: What are Tick Charts and Why Use Them?
- Market Technical Analysis - Double Bottom Lows! 02/23/2009
