USD Under All Out Attack
This morning in early Europe trade the USD was attacked by foreign exchange traders right across the board.
After closing below 80 and an all time low earlier this week in the widely watched USD Index Dollar weakness was apparent. London traders took little time in pushing the Euro above the psychologically important 140.00 level to yet another all time high. In early New York trade the Dollar has fallen to about 1.4050 Euros.
The Canadian Dollar was one of the leaders in the onslaught. One to one parity with the weak USD is only about 15 pips away as I write. As a resource rich currency the Canadian Dollar will likely continue to gain ground on the US Dollar. Even later today we may well see the Canadian Dollar reach parity.
The 50 point rate cut by the Federal Reserve this past Tuesday in the discount rate and the federal funds rate was all the forex markets needed to renew USD selling. Look for continued and likely increasing pressure on the USD to continue for quite some time.
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
