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 returned to gain today as its chief export, the crude oil, rallied as demand for energy increases, favoring currencies with a similar profile in foreign-exchange markets as the Australian dollar, which is a main commodity supplier for China.

An employment report waited during all the week and released today frustrated analysts bringing weaker-than-expected figures for the U.S. economy, pulling the dollar down versus most of the 16 main traded currencies.

The Canadian currency declined today versus most of the 16 main traded currencies after stocks and commodities had their rallies halted as risk appetite eased among traders globally, forcing commodity linked currencies down.

A report published today indicating fewer-than-expected new jobless claims applications last week allowed the dollar to gain versus the euro and several other currencies as improving employment data is a key-evidence indicating the U.S. economic recovery expected for 2010.

The Australian currency touched the highest level in 2 years versus the euro as commodities rates are fueling the Aussie’s rally, which also gained considerably versus the greenback during today’s session.

After December’s Fed meeting minutes went public today, the U.S. dollar declined versus multiple currencies, as policy makers discussed extending economic stimulus to revive the economy if necessary, impacting negatively the greenback’s outlook.

The Canadian dollar continued to advance today versus its U.S. counterpart as demand for commodities are still on the rise, favoring the loonie which is one of the currencies with the highest correlation with commodities charts, specially the crude oil, one of Canada’s chief exports.

The loonie, as the Canadian currency is nicknamed for the image of the waterfowl on the C$1 coin, started the year gaining versus most of the 16 main traded currencies as its chief export, the crude oil, advanced further, naturally forcing the Canadian correlated currency up in foreign-exchange markets.

The U.S. currency is having a negative start in this year’s first session as stocks and commodities rose worldwide, boosting demand for higher-yielding assets and currencies from commodity exporter countries, leaving the greenback in a second plan of attractiveness.