Wed, 29 Sep 2010 00:00:00 +0200

EUR Makes Big Gains in Dramatic Trading Day

Rumors that the Fed will take new measures to boost the struggling US economy ?sent riskier currencies soaring during trading yesterday, with the euro making some ?of the most dramatic gains. With the value of the US dollar low, and still dropping, ?higher yielding currencies remain attractive to investors looking for short term gains ?in the currency market. ? The EUR/USD pair approached the 1.3600 level yesterday, soaring almost 200 pips ?in the span of a few hours. The pair has since only staged a marginal correction, ?and is currently trading around the 1.3580 level. Against the yen, the euro saw ?gains of over 100 pips during the same time frame yesterday. The EUR/JPY pair ?currently remains steady around the 113.85 level.? Today, analysts are forecasting further gains for the euro, as a lack of significant ?global economic news will likely keep dollar prices low. Traders will want to watch ?out for any surprise announcements from the Fed regarding the falling greenback. ?Any news about a fresh US stimulus plan could send the euro up once again.?

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