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The Decision Of The Bank of China Put Strong Pressure On The US Dollar

Published 12/01/2011, 03:07 PM
Updated 04/25/2018, 04:40 AM
EUR/USD
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601988
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FTNMX301010
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Asian and European trading sessions: Euro: The Euro currency had a very significant day. At the beginning and most of the second part of the Asian trading session the Euro was down, influenced by news that the agency Standard & Poor's downgraded the credit ratings of 15 world banks. The EUR/USD pair hit $1.3256 point, which was its daily low. The situation had dramatically changed after the report of the Bank China, which reduced the reserve requirements for banks. In particular, the Reserve ratio was reduced by 0.50%. The EUR/USD pair sharply moved up and flew to $1.3531 within 30 min of time. US Dollar:  The news that the Bank of China lowered the reserve requirements for banks had supported the stock market and spurred pressure on the U.S. dollar. As a result, the currency gave back all it’s gains  against the major competitors.   British Pound: The GBP/USD pair has also a spectacular sessions and set new daily high at $1.5775. Japanese Yen: The yen fell against most of the 16 major currencies after today’s positive news, which caused the decreased demand for “safe-haven” assets. The USD / JPY pair traded in a range of Y77.84-Y78.13 from the beginning of the Asian trading session.     American trading session: As a result of the announced news that the Bank of China lowered the requirements for Bank’s reserves the U.S. dollar and Japanese yen sharply declined against their competitors. Indeed, these good news brought some confidence to investors and increased their demand for the risky assets. The Canadian dollar: The Canadian dollar rose after the report which showed that the Canadian economy grew by 3.5 % yearly in the third quarter. These news were ahead of forecasted values. Oil: WTI Oil futures rose to a two-week maximum and increased by 58 cents to 100.36 dollars per barrel at the end of American trading session Gold: The Gold also showed its big move to $1749 from $1702. https://forex-metal.com/news_posts

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