Wall Street ends in negative; Dollar losses gains

Fri, Nov 27 2009, 19:57 GMT
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FXstreet.com (Córdoba) – Stocks in the U.S. ended in negative on the first trading day after the Dubai crisis. Despite finishing with important losses main stock indexes moved far from the lows of the day. The Dow Jones lost 154 points but after the opening bell was falling more than 240. The Nasdaq fell 1.73% and the S&P500 slide 1.72%. Stocks pulled back after reaching new highs for the current year and ended the week practically unchanged.

Gold trades above $1,175 an ounce on a volatile session. The metal fell earlier to 1,137 from 1,186. Crude oil also recovered after falling to the lowest price in more than a month.

The Dollar pulled back from the highs but is still up rising for the second day in a row against European currencies. EUR/USD is consolidating above 1.4950. GBP/USD failed to break above 1.6500 but has risen more than 200 pips from the lows of the day.

James Hyerczyk, analyst at ForexHound.com, comments: “The U.S. Dollar gave back over 50% of its early morning gains as investors took profits after a strong two-day rise. The inability to break equity markets lower after the opening helped drive up demand for higher risk assets. Investors began selling the Dollar after it became clear that there would be no panic selling of higher risk assets.”

The Yen lost most of the gains across the board. The Japanese currency jumped to multi-month highs across the board during the Asian session but then pulled back close to the same opening levels. USS/JPY is rising for the first time after three days. The pair rebounded sharply at 84.80, fresh 14-year low.

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