By: Barbara Zigah
Now that the Group of 20 has concluded its 3-day meeting in South Korea, investors turn their focus towards Washington, DC where they await the Fed decision on quantitative easing.
Meanwhile, the U.S. Dollar broadly fell in Asian trading, with the Australian Dollar turning in a better than 1% gain against the greenback, trading at $.9930 on higher Australian producer prices. The Euro also rose .6% to $1.4035, from Friday’s late trading; investors see a strong possibility of the Euro breaking a barrier of $1.4050, and then striking a new high.
Two notable issues were addressed at the Group of 20 meeting. First, it was reported that the G20 central bankers and finance ministers struck a deal that would essentially give developing and emerging nations a larger say in the IMF, an issue that has long been contentious.
Second, the G20 agreed that each would avoid intentional currency devaluation or weakening of their respective currency, and there would be vigilance in avoiding excess volatility. Most investors took encouragement from the G20 decisions to reinstitute heavy U.S. dollar selling, which sent the greenback lower. The U.S. Dollar will continue to be under pressure until the November FOMC meeting is underway.