Forex News & Currency Analysis

In a light day of trading due to the Veteran’s Day holiday in America, investors took the opportunity to trade the USD up after early session losses failed to break through key levels.

The technical rally also came after Federal Reserve board members said that any recovery in the US economy will be erratic at best.  The comments initially caused the downturn of the Dollar in the overnight session but when support levels were not broken, traders took advantage of the light volume to push the Dollar higher.

At 10:20PM GMT, the US Dollar in forex online market was trading up .12% to the Euro to 1.4973, up .02% to the Japanese Yen to 89.82, down .3% to the Canadian Dollar to 1.0461, up .13% to the Aussie to .929 and up .1% against the Swiss Franc to 1.0082.

The rating agency, Fitch, declared on Tuesday that Britain is most at risk among the big economies to lose its AAA credit rating.

The concern that Fitch outlined was that it was evident that Britain’s ability to sustain a large public debt as well as soaring annual fiscal deficits was not as strong as other major countries such as the US.

The International Monetary Fund believes that Britain will likely run up their deficit to 11.6% of their Gross Domestic Product in 2009. This is the second largest deficit among all of the G20 countries; the US is first with 12.5% of GDP.  The news helped the Sterling fall broadly.

At 10:15PM GMT, the British Pound Sterling was trading down .21% to the US Dollar to 1.6728, down .09% to the Euro to .8945, down .12% to the Swiss Franc to 1.6873, down .4% against the Japanese Yen to 150.15 and down .5% versus the Canadian Dollar to 1.7586.