Risk Appetite Leads to the USD Drop against Most Forex Majors

Monday, September 6, 2010 posted by admin

On September 6, the US dollar tumbled against many major currencies in the forex trading market. Investors went for higher-yielding assets following hints of a brighter job outlook in the US. It turned out that US private employers have more jobs to offer than what what was previously forecast in August. In the end, it helped quell fears about the state of US economy and encouraged riskier investments. The stock markets went up by 1.53% for NASDAQ and by 1.24% for Dow Jones. Crude oil closed at $74.60 per barrel after a 0.6% decline, and gold ended up at $1,251 per ounce after a 0.25% decline.

After posting gains for several days, the euro finally reached a two-week high against the dollar. A bullish momentum is expected as long as it stays beyond the 1.2800 zone. The EUR/USD closed at a low of 1.2808 ad a high of 1.2897. Meanwhile, the British pound dropped against the dollar in its fourth week. Since June, this marks the longest streak of losses for the British pound. The slow growth of UK services and declining house prices have stirred worries about economic recovery. Moving on a bearish momentum, the GBP/USD traded with a high of 1.5468 and a low of 1.5389.

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