Is It The End of Dollar’s Decline?

Posted on Tuesday, December 8th, 2009 and is filed under Forex School. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

TheU.S. currency rebounded sharply yesterday before theend ofthis week’s session asabetter than expected jobs report started speculations that interest rates intheU.S. will be hiked bytheFederal Reserve before most analysts previously estimated.
payrolls report indicating adecline ofjust 11k employment places, from aprevious reading of-111k, brought optimism towards theU.S. currency providing support forthedollar topost its highest advance in11 months, astraders speculate that thebeginning ofaninterest rate hikes series is likely tobe started bythe
asemployment plays amajor role when considering anation’s economic recovery. Theyen was one ofthebiggest losers versus thedollar inthis week, andalso declined versus all 16 major currencies astraders indicate it will be themain source offunding for
operations.
If speculations regarding interest rate hikes intheU.S. will be confirmed bytheFederal Reserve, it is likely that theU.S. currency will gain terrain versus theeuro and
options, according toanalysts.
It is unlikely that rates will be raised inthenext Dec. 16 meeting, but theFed policy outlook improved drastically among traders after such apositive report.
EUR/USD closed at1.4880, asharp decline from theintraday rate of1.5084. AUD/USD closed at0.9149 from 0.9276.
If you want tocomment ontheU.S. dollar’s recent action orhave any questions regarding this currency, please, feel free toreply below.
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