The US Dollar fell in forex trading against the major currencies, increasing last night's losses due to speculation that the interest rate differential between the falling US Dollar and other currencies could widen further in the near future. ''Currencies are still rallying when there is a hawkish shift in central bank expectations,'' said John Noonan, an analyst at Thomson IFR. Speculation of another interest rate cut by the US Federal Reserve as early as this month in order to stimulate the stagnant growth in the world's largest economy. Forex traders are currently waiting on the release of economic reports in the Euro zone for more clues on future interest rate rises. Britain's consumer price index is to be released later today while its quarterly inflation report will be released on Wednesday.
In forex trading, the US Dollar fell, trading at 1.4518 per Euro compared to a previous trade of 1.4515 US Dollar per Euro. The British Pound was worth 1.9501 US Dollars compared with 1.9496 US Dollars overnight. Against the Japanese Yen, the US dollar was down at 106.86 Yen from 106.88 Yen as investors continued to unwind their carry trades funded from Japan.
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