3/17/2010 04:30 am: EUR/$..1.3778 $/JPY..90.51 GBP/$..1.5215 $/CHF..1.0536 AUD/$..0.9201 $/CAD..1.0128
Dollar Falls on Renewed Risk Appetite by
Michael BoutrosAsia Pacific markets were stronger today after the Fed announced yesterday that it will maintain record low rates for an "extended period of time." The language of the FOMC press release suggests that economic conditions have continued to improve with increases in household spending as well as signs of stabilization in the labor markets. US markets rallied on the news lifting the Dow some 43 points to close at 10685.98. Announcements from the BoJ also set the tone for a rally in Asian market as the central bank left interest rates unchanged. The greenback came under pressure as risk appetite steered investors towards riskier, higher yielding assets.
Euro Advances
The euro advanced against the dollar on the Fed's announcement, testing the 1.3780 resistance level yet again. The single currency was supported by reports that debt-stricken Greece will maintain its current BBB+ credit rating. Past the 1.3780 level, price ceilings emerge at 1.3850 and at the 161.8% Fibonacci extension taken from the Dec 22nd and Mar 2nd troughs at 1.3980. A break here could signal a reversal of the bearish euro trend. Downside risk strengthens with a break beneath 1.3640, with additional support seen at 1.3530 and the 1.35 handle.
This article contains the following sections:
Euro Advances
BoJ Battles Deflation
Cable Soars
Aussie Strengthens
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