A Higher Low- This Was What We Were Looking For

It was a dramatic day on the Forex market yesterday as traders were faced with two rate decisions and a massive turnaround on Wall Street.

The Bank of England took the stage first releasing a no- change status. Even though the bank held at its low of 0.5%, officials expanded their quantitative easing program by adding $25 billion. Bank officials stated that while the global economy is now facing a slow recovery, the BOE’s major concern is still economic growth. The bank stressed on that point mentioning that inflation isn’t their primary concern, especially as the numbers are at tolerate levels.

As always the ECB followed, with their decision and statement. This time round, Trichet was more lenient with his speech, expressing his optimism about the economic future. Trichet did express mild concerns about consumer spending and also stressed on the importance of a strong U.S Dollar. The bank held at 1% as the Euro-zone showed signs of a promising future.

On the Forex market the Dollar lost its ground as better than expected results from both the banks and a positive session on Wall-Street, sent investors into riskier assets. One must note that the Dollar’s decline was minor, as most investors were preparing for what is going to be a hectic Friday. See yesterday video report, for further information.

Dollar Index- Daily Chart
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