Global Recovery Signs Hurt Dollar

The U.S. dollar declined today against the euro and the other major currencies as the global economic recovery is looking more sound with the stock markets rising and the business/consumer confidence going up worldwide.
The drop of the U.S. currency’s rate against all other popular Forex currencies is going ahead of the monetary policy decisions that are scheduled for today by the Bank of England and the European Central Bank. The current growth the euro and the pound against the greenback could already include the optimistic statements from the central banks, which would mean a probable correction in case the announcements won’t be considered that optimistic later today.
The U.S. dollar fell to the 2-week low against the euro and to the 14-month low against the Australian dollar, which is currently benefiting from the positive interest rate decision carried out earlier this week. Analysts from the JPMorgan Securities say that there is a sense in the traders’ confidence in the fact that the crisis’ bottom is now behind. Considering a better prospect for the high-yielding assets and currencies, the dollar may remain in the downtrend for a longer period.
EUR/USD rose from 1.4687 to 1.4770 as of 9:28 GMT today — its highest value since September 24. AUD/USD went up from 0.8904 to 0.9041 — the highest level since August 8th, 2008. USD/JPY continued its decline today and decreased from 88.59 to 88.25.

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