FX:Forex: Dollar rallies as Fed dampens risk appetite
FXstreet.com (Barcelona) - The Dollar bounced up strongly yesterday against its main rivals, and rallied sharply over the last session favoured by the Federal Reserve, which showed a downbeat economic outlook for the US, trimming GDP growth expectations for 2011 to 2.7/2.9% from previous 3.1/3.3% and hammering market sentiment.
The Greenback has surged across the board over the latest sessions, especially against the GBP, which was capped at 1.6265 high on Wednesday's London session, and dropped all the way to fresh 12-week lows at 1.5980 so far today.
EUR/USD recovery from last week lows at 1.4070 was peaked yesterday yesterday at 1.4440, right ahead of Fed's statement, and the pair has remained depreciating since, reaching 1.4215 low so far.
USD/JPY Bounced up at 80.00 low yesterday and strengthened after Fed's statement, to breach 80.35 resistance area and hit week highs at 80.65 level, which is being eroded at the moment.
