U.S. Stocks up, dollar down after Fed's statement

Wed, Nov 4 2009, 20:14 GMT
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FXstreet.com (Barcelona) - U.S. stocks have gone down immediately after the Fed released is monetary policy statement, to return to session highs somewhat later, cheered up by Fed's commitment to maintain rates at all-time lows for an extended period.

Dow Jones Index trades 1.1% up, while the Nasdaq Index adds 0.6% and the S%P Index trades 0.9% above its opening level one hour after the Fed released its statement.

The Dollar, however has followed different fate, dovish Fed statement has sent the Dollar to lower levels. EUR/USD rally from 1.4625 low on Tuesday, to 1.4905 session high before easing to levels around 1.4880 at the moment of writing.

GBP/USD rally from 1.62600 low on Tuesday has extended to intra-day high at 1-6600 although the pair remains at 1.6580 at the moment of writing.

USD/JPY bounced from levels right below 90.80 to hit 91.30 resistance level, and drop back to 90.90 at the moment of writing.

Gold prices have also rallied and from intra-day low at $1,085.95, Gold has soared to hit a fresh all time high at 1.097.70 on the back of Fed's statement.

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