Forex Dollar topple after the US ISM data

After the unexpected rise in the crude oil prices and the decline of the US manufacturing in the last month of December, as depicted by the US data the dollar face tough against the European currency and the Japanese yen. Further there are expectations from the Federal Reserve to bring down the interest rates further and cut the cost of borrowing to improve the market conditions over the prevailing as if there will be crisis in the market for credit it can hamper the economic growth whereas the sufficient inflow can bring the economy to a smoother track.

2007 has proved to be worst for the US dollar as it took the economy into the state of crisis and made it face major problems that can bring recession in the economy by 2008, this year is truly going to proof the fate of us dollar on the contrary remaining 2 days of the week are going to be the most important days as there will be trading back after a long holiday term and the market will be back to the normal trading activities. On the other hand the European central bank had been on the continuous process of injecting funds and keep short term rates close to the criterion but that can harm its worth in the near future the euro is however been on the process to maintain its position amongst the majors until the first half of 2008.

First day of the year for dollar had not been so warming and there exist possibility for the further rate cuts. Further the housing data could intensify the fed to adopt for some more measures to bring stability to the economy. Increment in the prices of the oil took the gold market to the zenith. However after looking over the data of the housing there were expectations for the economy to be on the path of recession this year.
Being reported by www.forexwebtrader.com Aussie advanced against the US dollar and yen, whereas the sterling traded at 1.9840 versus the dollar, 0.7421 against the euro, 217.56 versus yen, and 2.2198 versus Swiss franc. The Aussie - greenback pair hit a three week high at 0.8847 and afterwards it went a bit down and it's trading recently at 0.8833.

Further there are expectations among the investors and trader for further interest rates cuts by the fed this month and the coming quarter. Whereas the dollar needed too much assistance this year to recover the losses it yielded the last year.

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