US Dollar falls to record low

The US Dollar fell to record lows yesterday (13/3/2008), gold touched $1000.

What’s driving the move?

The global markets are volatile, and the gloom of recession is building. US sales figures confirmed that recession is happening there already, which coupled with the US housing / credit crisis makes the economic situation for the US look very weak to many people.

Key Level notes:

  • the USD tumbled against the Yen through Y100 (1st time since 1995)
  • Euro moved to a record high of $1.56

What next?

There are rescue plans being discussed in congress to put forward $300bn loans to help the mortgage crisis, as well as calls for reduced dividends from banks…

But where will the market go… who knows.. clearly people are worried by the volatility, but in those situations there are profits to be made for good traders.