“Traders are currently backing the Australian dollar, Euro and Sterling over the US dollar.

“The US dollar is trading lower across the board as global stock markets start the week on a positive note on the back of increasing investor risk appetite. The G20 meeting held over the weekend concluded that global stimulus efforts should remain in place. The Federal Reserve is expected to keep interest rates low for some time which will keep the pressure on the US dollar. Trading was interesting after Friday’s horrific US employment data lead to dollar buying pushing cable down to 1.6515 however any gains were swiftly lost as cable finished the day back above 1.66. This morning’s cable has traded to a high of 1.6843.

“Sterling is also holding its ground against the Euro, currently above 1.12. This week, on Wednesday, the Bank of England will publish its quarterly inflation report and analysts are expecting a more positive note for UK economic growth after last week’s extension of the bond purchase programme by only £25 billion.”

Wednesday 11 November 2009, 11:05am

Tags: Australian dollar, Federal Reserve, G20 meeting, global stock markets, us dollar, US employment data

Rishi Patel, Head of FX trading at FairFX.com, commenting today, said, “The Global equity sell off has prompted safe haven buying in currency markets. The US dollar rally has kept the pressure on the Euro and Sterling and investors will be taking a cautious stance ahead of the major central bank meetings. This morning the pound failed to find any real direction, and there is still some ambiguity as to whether the Bank of England will expand the quantitative easing programme and if so, how far?

"This week is likely to set the scene for where financial markets will finish the year as traders await key decisions from the Federal Reserve, the Bank of England and the European Central Bank. Although markets are not currently expecting a change in base rate by the Federal Reserve, all eyes are watching as traders begin to speculate on the direction of monetary policy.

"If the markets stay cautious we would expect the dollar to appreciate as the ‘safe haven’ currency of choice. And in the UK we could see pressure firmly back on Sterling if the widely debated extension to the Asset Purchase Facility is significant."

FairFX.com is an internet based foreign exchange business with a technology platform that allows it to provide UK travellers with the best foreign exchange rates in the market.

Tuesday 03 November 2009, 10:05am

Tags: bank of england, euro, European Central Bank, Federal Reserve, pound, sterling, us dollar