EURUSD Fundamental :

Historic Relief Rally Brings Hope

U.S. Dollar Trading (USD) gave up gains against all except the yen as worlds stocks surged on bargain hunting. CB Consumer Confidence Plummeted but that was ignored as the rally that began in Asia spread to the Europe and then the US. Expectations of a Fed Rate Cut were combined with news that the Bank of Japan might also cut rates. In the U.S. share markets, the NASDAQ was up 143 points (9.53%) and the Dow Jones was up 899 points (10.88%). Crude Oil closed down -$0.49 ending the New York session at $62.73 per barrel. Looking ahead, September Durable Good Orders are expected at -1.5% vs. -3.3% previously. Also released the FOMC statement widely expected to contain a 0.5% rate cut.
The Euro (EUR) capitalized on surging stocks by breaking the key 1.25 level and consolidating. The late Dow surge induced the run up to resistance at 1.2800 in early Asia. GFK German Consumer Sentiment unexpectedly jumped to 1.9 vs. 1.5 expected and the German Stock market surged 11%. Overall the EUR/USD traded with a low of 1.2331 and a high of 1.2791 before closing the day at 1.2520 in the New York session.

US Dollar: What Impact Will the Federal Reserve's Rate Decision Have?

The US dollar strengthened for much of the morning, only to plunge at the end of the day as a nearly 11 percent surge in US stock markets drained demand for safe-haven assets. US economic data released at 10:00 ET worked in favor of dollar weakness, but the greater trend was the rise in equities and risk appetite.