Daily Forex Commentary for October 22, 2009

October 22, 2009

U.S. Dollar Bounces off 14-Month Low as Equities Break

The U.S. Dollar was under pressure for most of the day on Wednesday. Strong appetite for risky assets drove traders into equities which triggered a surge in higher yielding currencies. The rally in stocks began slightly before the opening following better than expected earnings from Wells Fargo Bank and Morgan Stanley. The Fed’s Beige book stabilized the Dollar.

Late in the trading session, equity market support began to erode and the market accelerated to the downside. This triggered a strong …
Read More …