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FED Interest Retes Review: The FED keeps rates unchanged feeding risk appetite

Wed, Nov 4 2009, 20:18 GMT
by FXstreet.com Team

FXstreet.com


After the FED left rates low for an extended period, due to high unemployment levels and current low inflation, dollar is losing ground quickly against european and commodity currencies.

The fact that FED expressed growing confident in the economic recovery, send stocks higher feeding risk appetite: gold reach a fresh historical high at 1097, EUR/USD  hit 1.4900, while GBP/USD reached the 1.6600 level as expected.

Japanese yen, the other safe haven, remains however in range between 90.70/91.00 area, despite reaching an intraday high of 91.30. At this point, I do believe that no much more movements are going to be seen today, as investors will be reluctant to play strong cards ahead of tomorrow's data.

BOE and ECB will be announcing there monetary policies also, and witn Non Farm Payrolls next Friday, we will need to wait for the end of the week to confirm current dollar bearish trend.

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