US Dollar Selloff

This week has been an active one for forex markets and has offered investors many new forex investment opportunities. Rising risk sentiment has prompted a sell off of the US dollar as forex brokers seek forex opportunities offered by several higher performing currencies.

Euro Up 6% Since Last Week

The Euro rose to $1.3646, the highest since January and up 6% from last week when the Euro traded at $1.2922. Earlier gains declined after a senior German legislator stated that Euro Zone countries had agreed on a rescue plan to keep some member states from going bankrupt. Forex brokers took note of a statement by a European Central Bank official that denied the existence of the fund.

Fed Policy Concerns

Forex brokers expressed concern about the move by the Federal Reserve to purchase $300 billion of long term government debt. The move was seen by many forex brokers as inflationary and feared this could undermine the greenback. The US dollar has fallen by 5% this week due to actions by the fed and rising risk appetite.

Latin American Currencies Offer Opportunity

This week forex opportunities were provided by a variety of currencies. Latin American currencies provided many with forex investment opportunities. The Brazilian Real, the Mexican Peso, and the Columbian Peso all rose against the dollar providing forex opportunity to forex brokers and investors.

New Zealand Dollar Gains 7%

Many took advantage of forex opportunities offered by the New Zealand dollar which rose 7%, the biggest rise since the biggest rise since the Kiwi dollar was floated in 1985. The US dollar rose slightly on Friday but many forex brokers expect the dollar to suffer its largest weekly decline in 24 years. In recent weeks the dollar has provided investors with safe haven and forex opportunity as investors and forex brokers turned to the dollar for safe haven in times of economic uncertainty.

Forex markets have provided many with forex investment opportunities this week. Many believe that stimulus packages are beginning to have a stabilizing effect on the financial sector. Despite the ongoing recession forex brokers and investors are still able to turn a profit.