The Dollar declined against all of the 16 most actively traded currencies on Friday, amid a rebound in risk appetite, as global stocks rallied following speculation of a bailout package for Ireland. There appeared to be no U.S economic data released on Friday but the Fed chairman Ben Bernanke defended the Bank’s decision to embark on a second period of quantitative easing through the purchase of Treasuries. Risk appetite was initially weaker following the Chinese move to increase reserve requirements, before the Euro challenged resistance levels around the $1.37 area. There may be a risk of volatile trading conditions over the week with liquidity curved by the U.S Thanksgiving holiday. Media reports suggest that the Irish rescue package would be worth at least €70 billion and will be announced at some point on Monday.
Written by Adam Solomon
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