Forex News

The U.S. dollar advanced versus several key currencies after a Federal Reserve statement announcing that a number of stimulus to help the economic recovery will be lifted, as according to central bankers, the economy is already showing enough evidences of improvements to allow these measures.

The Canadian dollar did not manage to revert its losing trend today as equities and commodities continued to decline globally, fueling emerging concerns that Canada’s economic recovery will suffer from a slower-than-expected recovery in most of its main trading partners.

The European market outlook continued to grow pessimistic today as equities dropped in the region forced by raising concerns that economic stimulus will be lifted in the region, and uncertainties regarding the region’s financial stability affected the appeal for the Euroland’s single currency.

The yen continued to profit from a favorable scenario for refuge currencies as traders are increasingly concerned regarding the economic trends for 2010, as requirements for bank loans are becoming stricter, fact which could slow down the growth pace in most of the world’s wealthiest nations.

The Canadian dollar continued to decline today reaching the lowest level in five weeks as risk aversion rose globally, fueled by China’s new restrictive loans policy, which is likely to decrease appeal for currencies like the loonie, extreme related to commodities and stocks performance.

The Brazilian real continued to be influenced by bearish equities and commodities markets and did not manage to pare gains after falling during the most of the time last week.

The Australian dollar managed to gain versus lower-yielding currencies before a report to be released this week in the country is likely to show an advance in inflation in the last year’s last quarter, helping speculations that a series of interest rates in the country will restart.

The Canadian dollar continued its last week trajectory this Monday as markets that have strong correlation with its price operated on the red globally, forcing the loonie down versus virtually all of 16 main traded currencies in the beginning of this week.

The pound rose in the beginning of this week’s trading session before a gross domestic report to be published tomorrow in the U.K., which according to forecasts will show positive figures, making the Great Britain to leave the worst recession since the Second World War.

The yen ended the week with a very positive performance versus most of the main traded currencies as a new wave of risk aversion brought traders to purchase assets in the Asian country, since the yen is well-known for being the safest refuge currency for times of uncertainty in trading markets.