Dollar struggles on the session, equities ramp higher as well
We're seeing fresh highs now for the euro, pound, and the commodity currencies against the dollar. EUR/USD is up 0.5% to 1.1170 with GBP/USD also up 0.5% to 1.3280 currently. AUD/USD in particular is seeing a strong jump to its highest levels for the year, up 1% to 0.6835. The pair had struggled to clear 0.6800 on the daily chart previously but buyers are finding added conviction today. USD/JPY is up 0.4% to 142.90 again but had earlier met lows around 142.03 in European morning trade. The back and forth action in the pair continues to play out with the bond market also playing a role there.The dollar had initially weakened on the immediate reaction to the Fed's 50 bps rate cut yesterday. Then, the first aftershock of the event saw it recover losses for the most part. But now with the second aftershock, we are seeing traders lean back to their immediate conviction again.The fall in the dollar comes as risk sentiment is starting to gain more positive traction on the session. European indices are seeing well over 1% gains across the board now. Meanwhile, S&P 500 futures are up 1.5% with Nasdaq futures up 2.0% currently. Fresh record highs are beckoning for US indices ahead of Wall Street trading later. This article was written by Justin Low at www.forexlive.com.
We're seeing fresh highs now for the euro, pound, and the commodity currencies against the dollar. EUR/USD is up 0.5% to 1.1170 with GBP/USD also up 0.5% to 1.3280 currently. AUD/USD in particular is seeing a strong jump to its highest levels for the year, up 1% to 0.6835. The pair had struggled to clear 0.6800 on the daily chart previously but buyers are finding added conviction today.
USD/JPY is up 0.4% to 142.90 again but had earlier met lows around 142.03 in European morning trade. The back and forth action in the pair continues to play out with the bond market also playing a role there.
The dollar had initially weakened on the immediate reaction to the Fed's 50 bps rate cut yesterday. Then, the first aftershock of the event saw it recover losses for the most part. But now with the second aftershock, we are seeing traders lean back to their immediate conviction again.
The fall in the dollar comes as risk sentiment is starting to gain more positive traction on the session. European indices are seeing well over 1% gains across the board now. Meanwhile, S&P 500 futures are up 1.5% with Nasdaq futures up 2.0% currently. Fresh record highs are beckoning for US indices ahead of Wall Street trading later. This article was written by Justin Low at www.forexlive.com.
