Trading Point Daily Market Review – United States Session – Dollar plunges across board on unlikely interest rate hike

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The Euro gained in today’s US session, recouping losses incurred in earlier sessions. The Euro opened on a positive note and went on in a one way direction to gain over 130 pips, rising from a session open of 1.4393 to reach a session peak at 1.4502. The rise is believed to be on the back of reported selling by the US central bank and the currently low US interest rates which are expected to remain still in the near term. The Dollar had in previous sessions been gaining against the Euro, remaining firm around the 1.4440 level, but has failed to provide a failure swing on the recent trend of the Euro, and as such we may see the EURUSD rise back up and retest the 1.4520 levels.

 

The Sterling continued in its gains in the US session, rising for the first time in 4 days against the greenback, as it gained over 85 pips from a US session open of 1.6296 to reach a day’s high of 1.6383. The British pound also rose against the Euro as European worries with regards to Greece having to restructure its debt, helped push the EURGBP to a low of 0.8806 in the wake of the US session. The end of the US session however saw the Euro regain some loses against the Sterling and brought the cross pair back up to levels around 0.8861.

 

The Swiss Franc remained firm in the US session, staying close to its recent all time high reached against the USD as the USDCHF pair was pushed to a low of 0.8895 – a level in line with the same all time low reached last month on the 16th. The current level of the USDCHF is at 0.8920, signaling a gain of some 22 pips from the session open. The CHF has continuously gained for over a week now by which time it have varied by over 390 pips.

 

The Canadian Dollar strengthened in the US session after having weakened by over 60 pips in the previous session to bring the USDCAD to a weekly high of 0.9668. A drop in the manufacturing sales for February to -1.5% from an expected figure of 0.6% did little to weaken influence the CAD in the US session as the currency rallied throughout and pared back on the previous session’s losses.

 

The Gold once again edged closer to its all time high of $1476.2 per ounce as it gained over $18 in the US session as a less than likely interest rate realization for the USD saw investors take comfort in the safe haven commodity. The precious metal rose to a high of $1474.0 and is currently on an uptrend.