Decreasing confidence of investors towards the greenback pushed the EURUSD, the major currency pair in the world, to 1.4726 at 14:05 ET. It is a new all-time high for the euro against the dollar while only 3 months ago that currency pair was testing the 1.34 level. There are no clear signs that the situation on the US market will improve and investors are losing their patience.

Many other currencies are benefiting on the weak USD. The GBPUSD increased to 2.1024, which can last be seen 26 years ago. The Polish currency is also on the rise. The USDPLN declined to 2.4581, the lowest level in over 12 years. The Canadian dollar keeps gaining with the USDCAD falling to 0.9055. New Zealand’s currency is rebounding also against the greenback. The NZDUSD gained to 0.7880 today in the morning.

The declining value of the American currency makes commodities more attractive to investors. Most commodities are quoted in USD so their prices are increasing pretty quickly. The biggest gainers include oil, where one barrel of Brent oil already costs over 95 USD, and gold, which jumped to 845.43 per troy ounce coming close to the historic all-time high from 1980 at 850 USD.

The massive sell-out of the dollar continues. Another interest rate cut by the Fed showed that the US economy needs a strong kick to rebound from the tough situation it is in. But the low level that the greenback achieved against the euro is becoming dangerous. Government officials are noticing that a strong euro might hurt European exporters in the long-term. If the EURUSD stays over 1.45 for a longer period of time, an intervention by central banks is probable.

Adam Narczewski