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US Dollar Drops Against Euro Amid Sell Off
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The US dollar fell significantly against the euro and other major currencies because the European Central Bank and US Federal Reserve on monetary policy outlook for 2008 came out. In Europe, the bank could move to cut euro interest rates through the medium term, that means no cuts in the short term. The FED gave clear signal that the US central bank stood ready to cut interest rates on an increasingly dim outlook for domestic economic growth. Fast-diverging forecasts for US and European yields forced the euro near its highest levels in two months, and overall momentum clearly favors further EUR/USD gains. FOREX traders dumped American currency and will continue to do so in the month's to come. This is especially true when the announcement of a rate decline at the end of January comes to pass.
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Jan 10, 2008, 6:22 PM
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