The USD has apparently plunged to its lowest level in 2009 versus the EUR earlier today. The sharp rise in Germany's exports for July, mixed with optimism that Wall Street will begin to make modest gains after yesterday's Labor Day holiday, spells bullishness for riskier currencies. As a result, the US Dollar has taken a dive.
Following the plummeting Dollar value, Gold prices sparked another bullish run and broke the significant psychological barrier of $1000 an ounce. Gold currently trades near $1,004 per ounce.
While the GBP/USD pair has risen to two-and-a-half week high, most speculators are anticipating a downward valuation of the GBP following this week's decision from the Bank of England (BoE) regarding interest rates and other monetary policies. Many are expecting to see the slump in Britain persisting despite recent efforts. As such, forex traders may see a sharp reversal to the GBP's recent strength.