Forex Blog: New highs for stocks; new lows for the Dollar

Tuesday, September 15, 2009

New highs for stocks; new lows for the Dollar

Tue, Sep 15 2009, 21:49 GMT
http://www.fxstreet.com

FXstreet.com (Córdoba) – Comments and data fueled equities in the U.S. Wall Street rose and main stock indexes posted fresh highs for the year. The Dow Jones closed at 9680 points and the S&P500 at 1053; both closed at the highest level since October of 2008. Ben Bernanke said that the recession is “likely over” and earlier the Commerce Department announce that retail sales jumped 2.7% on August, while analyst where expecting an increase of 2%. The Dollar fell across the board again posting fresh multi-month low against the Euro and the Swiss Franc.

Dollar weakness continues

EUR/USD jumped during the American session rising from 1.4580 to 1.4688, posting the highest price since December. Greenback failed to hold gains and lost ground. The pair has fallen seven times in the last eight days.

Cable fell across the board on Tuesday but during the American session recovered part of the losses. GBP/USD bottomed at 1.6400 (one-week low) and from there rose, but failed to hold above 1.6500. The par fell for second day in a row. Against the Euro, Cable plunged to a 4-month low. EUR/GBP rose above 0.8840 to 0.8890.

The Yen finish mixed across the board. USD/JPY is back above 91.00 but only a few pips on top of the opening price. GBP/JPY tumbled to 149.40 posting a two-week low. Currently the pair is holding above 150.00. EUR/JPY rose breaking above key level at 133.30.