Ratings Rock Pound And Dollar

Daily Forex Fundamentals | Written by Easy Forex | May 22 09 01:25 GMT |

U.S. Dollar Trading (USD) fell heavily for the second day as concern for the US's AAA rating saw investors dump the dollar. Weak US stocks did little to help and the link between the two has weakened. Weekly Jobless claims fell 12k to 631K this week. Crude Oil was down $1.01 a barrel to close at $61.05. In US share markets, the Nasdaq was down 32 points or -1.89% and the Dow Jones was down -129 points or -1.54%. Looking ahead, Fed Chairman Bernanke Speaks. The Euro (EUR) gained heavily with the market focusing on the USD. Gains in the Euro led the market higher with EUR/AUD and EUR/GBP also making solid gains. May EU PMI's were slightly better than expected at 44.7 vs. 43.8 previously. The Euro is the second largest currency in the world and any threat to the USD will result in substantial gains for the single currency. Overall the EUR/USD traded with a low of 1.3727 and a high of .1.3925 before closing at 1.3910. The Japanese Yen (JPY) gained against the USD although support at the low 94 Yen level was very solid. Crosses were mixed finishing slightly higher as their respective majors soared. Overall the USDJPY traded with a low of 93.96 and a high of 95.28 before closing the day around 94.20 in the New York session. Looking ahead, BOJ meeting today. The Sterling (GBP) had a very volatile day crashing after the S&P put the UK on negative watch. The pair found support at 1.55 and rebounded for the rest of the day to touch fresh week highs just below 1.5900. UK business investment fell 5.5% in Q1. Overall the GBP/USD traded with a low of 1.5513 and a high of 1.5893 before closing the day at 1.5870 in the New York session. Looking ahead, Q1 GDP is forecast at 1.9%. The Australian Dollar (AUD) retreated with stocks in the Asian session before rocketing with the Euro to test 0.7800 for the second time this week. The correlation with US stocks is weakening and the safe haven status is failing to have the same impact as at the start of the Financial crisis. Overall the AUD/USD traded with a low of 0.7666 and a high of 0.7805 before closing the US session at 0.7795. Gold (XAU) rallied with the USD weakness causing investors to seek out protection. Gold has long been seen as a USD hedge. Overall trading with a low of USD$936 and high of USD$956 before ending the New York session at USD$952 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products