Major anticipation for the Federal Reserve quantitative easing measures forced the single currency to decline against majors in today’s trading as indicated by the US dollar index that tracks the performance of the dollar against a basket of currencies.

The US dollar index dropped on the daily scale to 77.72, compared with the opening levels of 78.07, where it managed to reach the highest at 78.36 and the lowest at 77.59.

The Fed will release its Beige Book later on today, which may show the extent of easing conditions and the course of recovery that floundered over the past period.

Policy makers in Britain and the constant debates among them over the past few months drove the pound lower against most majors except the dollar.

The pound fell as investors await the BOE’s next move on whether to provide markets with further stimuli or simply preserving the current monetary stand the bank is on.

The pound-dollar pair rose to trade at 1.5745, compared with the opening levels of 1.5702, where it managed to reach the highest at 1.5766 and the lowest at 1.5648.

Osborne announced the details on the biggest spending cuts in nearly 70-years, which would impact the recovery process and growth negatively and force volatility to tamper with the pound’s trading over the upcoming period.

Lack of fundamentals from the euro-zone pressured investors to target higher yielding assets; the euro-dollar pair ascended to 1.3835, compared with the opening levels of 1.3723.

The pair’s correctional move to the upside aims to retest the resistance at 1.3850, where failing to breach it will preserve the bearish trend to target 1.3670 levels.

Finally, the dollar fell against the yen on the daily scale to trade at 81.26, compared with the opening levels of 81.54, while reaching a high of 81.65 and a low of 81.26.

the expected bullish trend for today remains intact. Keep in

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While Fed Chairman Bernanke is speaking in Boston, I’m writing you this email from Chicago.At this moment, Bernanke is still at the podium. But his words are already echoing on the airwaves and the Web, while the gold and currency futures markets are going haywire. The obvious take-away …He will DEFINITELY launch a second MAJOR round of money printing!How much? He doesn’t seem to have figured that out yet — or doesn’t want to tell us.Unfortunately, that’s no longer a critical issue … because unless someone or something stops him dead in his tracks, he can always launch a third round, a fourth round and more.Will it work? Bernanke’s not sure! Easy money doesn’t directly impact employment, he admits. But his message s Read more…

Australian Dollar: The Australian Dollar opens higher against the greenback today at 0.9860, recovering from a low of 0.9785 during yesterday’s domestic session after a fall in business confidence. Whilst business conditions improved slightly in September according to the NABs monthly survey, confidence slid one index point to 10 points. Also taking the wind out of the Aussies sails yesterday was a weaker local stock market weighed down by mixed offshore leads.

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Oct. 8 () – Kapiti investment adviser Chris Lee has wooed former South Canterbury Finance executive Kevin Gloag to set up a branch in Timaru.

Former Allan Hubbard-lieutenant Gloag will be opening a new and permanent branch of Chris Lee Stockbroking, and Lee said he will announce details within a few days in his weekly newsletter Taking Stock, published on his website today.

Gloag left SCF in May after 29 years’ service following former chief executive and chief financial officer Lachie McLeod and Graeme Brown out the door. Glo

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A weaker than expected US non-farm payroll report gave more fuel to expectations that the Fed will begin some form of quantitative easing soon. That pressured the US Dollar against its major rivals. The USD/JPY sliced through the 82 level, pushing to fresh 15-year lows. Other higher yielders cut their earlier overnight losses to the Dollar.

All Things Forex

Become a better Forex trader, learn from our daily All Things Forex broadcast. Oct. 1, 2010 (Allthingsforex.com) – As the market continues to price-in the expectations for additional monetary stimulus by the Fed, next week’s U.S. Non-Farm Payrolls and Employment Situation report will provide an important clue which should help traders in their efforts to solve the quantitative easing riddle. In preparation for the new trading week, here is a list of the Top 10 spotlight economic events that will move the markets around the globe.  1.    AUD- Reserve Bank of Australia Interest Rate Announcement, Mon., Oct. 4, 11:30 pm, ET. Followi Read more…

All Things Forex

Become a better Forex trader, learn from our daily All Things Forex broadcast.

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more..

In the broadcast today: What does a “Currency War” Mean for the USD? With the topic of “currency wars” heavy on investors’ minds, we examine the currency market environment and explore the potential impact of a “currency war” for the USD, the EUR and other currency majors, we continue to monitor the bullish trend in the EUR/USD currency pair, we analyze the weakness of the GBP vs.

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