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Dollar Losing its Position Against Many Currencies

In trades in Europe, the USD is continuing to lose its position against the key pairs after the publication of the FOMC minutes. The euro/dollar rose to 1.1367, the pound/dollar is trading beneath the session maximum around 1.5330.

Demand for the euro is up after external trade figures for the UK were published. The eurobulls have also been lent a helping hand by a growth in the price of oil and precious metals.

The UK’s balance of trade deficit in August stood at 11.1 billion pounds against a forecasted 10.0 billion (July’s deficit was reassessed from 11.08 billion to 12.20 billion pounds).

Brent gained 1.6% to 54.05 USD and is currently trading around 53.52 USD. This positive movement is down to expectations of what will be written in the Baker Hughes report which is out later on today. Market participants believe there has been a fall in oil extraction rigs in operation in the US.

The economic calendar for this evening is empty, so I’m expecting a rebound for the euro/dollar from its current level to around 1.1300/10. We could see the pound/dollar rise to 1.5360 when the euro/pound begins a downward correction.

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