Forex - Dollar stays under pressure as market anticipate further rate cut
The Dollar edged lower against the Euro and trimmed gains versus other European currencies on Wednesday as comments from a Federal Reserve official and a key economic report affirmed expectations for further rate cuts. However, it posted steep gains against the Yen, buoyed by sharp gains in the stock market, with investors going back into riskier assets.
Government data showing New Orders for long-lasting US-made goods dropped for a third month in October, with companies appearing wary about making new investments.
Most analysts believe the Dollar could further decline given the weak tone in S economic data and the trickle of bad news from financial companies hit by the credit crunch. The Fed is widely expected to cut interest rates by 0.25 in December to 4.25% and again next year to stem economic fallout from the housing debacle.