Forex: The rise is gold and stocks sent Dollar lower

Tue, Dec 1 2009, 22:59 GMT
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FXstreet.com (Córdoba) – Greenback finished with losses on Tuesday pressure by a rally in stocks that rose worldwide and gold that reached a new historic high at 1,200. Cable recovered from yesterday’s losses and the Yen finished lower after the Bank of Japan decided to expand it quantitative easing program.

Despite ending the day a few pips away from the lows Greenback posted important losses and trades near multi-month lows against the Euro and the Swiss Franc. EUR/USD consolidates above 1.5000 and on Tuesday peaked at 1.5118. USD/CHF trades near the lowest price of the year. Dollar has failed so far to get back above the parity level.

Cable rose across the board and recovered from yesterday’s losses. GBP/USD jumped more than 250 pips and posted the biggest daily gains since late October. EUR/GBP broke an uptrend line suggesting that the Euro could lose momentum in the coming sessions against the Pound.

The Yen fell across the board pressure by the decision of the Bank of Japan. USD/JPY jumped to 87.50 but a few hours later the pair was back at 86.55 showing that the pair is still weak.

Currencies tied to commodities posted big gains against the Dollar helped by an increase in risk appetite and in asset prices.

Korman Tam, from Forexnews.com comments on the coming session: “Traders will look ahead to Wednesday’s ADP private sector payrolls report as a proxy to Friday’s key jobs data. The ADP payrolls reading is seen revealing a loss of 175k jobs in November versus 205k jobs lost a month earlier. The November unemployment rate is estimated to hold steady at 26-year highs at 10.2% while the non-farm payrolls are seen shedding 130k jobs.”

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