Forex: Dollar starts week with gains

By IBTimes Staff Reporter | December 21 2009 5:33 PM

FXstreet.com (Córdoba) - Greenback gained across the board on Monday and reached fresh multi-week highs against JPY, GBP and AUD. The Dollar rose despite an increase in stocks in Europe and Wall Street showing that still has momentum and that the inverse correlation with equities continues to break down.

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EUR/USD is currently testing last week lows at 1.4260 and on Monday closed at the lowest price since September 3. GBP/USD failed to hold above 1.6100 and fell to 1.6025 reaching a fresh two-month low. The pair has fallen more than 550 pips since the beginning of December.

USD/CHF rose but did not hit multi-month highs. The Swiss Franc is still showing more strength than its European rivals. EUR/CHF holds below 1.5000, the pair recovered after starting the week below 1.4900. The Yen fell across the board at a moderate pace. USD/JPY rose above 91.00 to 91.25 hitting a 6-week high.

Currencies tied to commodities finished mix against Greenback. AUD/USD fell to 0.8805, fresh 2-month low. The Australian Dollar was affected by a decline in the price of gold. The Canadian Dollar was among the few currencies that rose against the Dollar. USD/CAD tumbled during the European session to 1.0535 (1-week low) but then recovered and rose back above 1.0600 after a report showed a smaller-than-expected increase in retail sales in Canada and a slide in crude oil prices. The barrel pulled down from $74 to $72.

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