Wednesday October 14, 2009

USDX falls below 76 again, EUR/USD forex rate above 1.48 on further US dollar weakness

bloomberg.com :

The US dollar declined to the lowest level against the euro since before the bankruptcy of Lehman Brothers, unwinding gains posted earlier as investors sought safety amid the global credit crisis. The USD's drop helped push gold prices to a record high and oil prices above $74 a barrel for the first time since Aug 2009. USDX, the US Dollar Index, dropped to as low as 75.738. The dollar's decline versus the euro accelerated after breaching $1.4850. The dollar has lost 17% since Oct 2008. Gold prices rose to a record amidst a weakening dollar and inflation fears. Platinum, palladium and silver prices also climbed to 1-year highs.

- Whatever the Asian central banks did in their intervention, either : a. it needs a second round, or b. it can't be helped, as the USD continues its fall. This time, the USDX has gone further below the key 76 support level than earlier, which has lead to corresponding increases in crude oil prices and gold prices. The next support level for the USDX is 74, the next one after that is 72, and unless the US dollar stages another stunning comeback, beyond 72 it's freefall alley.

See also :

1. US Dollar Index (USDX) crashes below 80 after Fed rate cut to zero percent, ZIRP era begins
2. NYMEX crude oil prices soar above $72 on economic recovery, euro rally
3. COMEX gold prices hit new record high of $1061.40 per ounce in third straight session
4. Asian central banks intervene to prop up US dollar after USDX fall below 76

(2009-10-14 06:50:37 SGT) [Biz] Permalink

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