Wed, 13 Oct 2010 18:33:00 +0200

Forex: Dollar down as Wall Street rallies

FXstreet.com (Buenos Aires) – Dollar has fell sharply this Wednesday, as FOMC Minutes yesterday supported further QE in the short term for the US economy, while stocks rallied higher amid increasing risk appetite. DJIA is up more than 115 basis points, while S&P added today 1.02%; both indexes remain near daily highs, by the time of writing, also fresh 5-month highs. Gold also rallied today, reaching yet another record high this time at $ 1374.45/oz.

Commodity currencies had been the overall winners, as AUD/USD reached a fresh 32 years high barely below 0.9930, while USD/CAD fell to 1.0010, 10 pips shy from parity. Save havens’ Swiss Franc and Japanese Yen however, hold their strength against greenback, with USD/CHF trading below 0.9600 and USD/JPY around 81.80 most of the session. EUR/USD was again contained to the upside by 1.4000 psychological level, with its bullish trend coming from mid September still intact.