U.S. Dollar Selloff Underway on the Spot Forex Market

Spread bets and CFDs on forex trading should consider that the risk trade is very much in vogue right now. The sterling and the euro are both finding favour in forex trading as equities rally and as gold prices surge higher. Indeed, it looks as though dollar weakness will be the theme on the spot forex market today.

One of the reasons that the dollar is weakening further is that representatives at the G20 summit agreed to keep interest rates lower, reports The Street:

Since the Sunday session open, the dollar index was sold at a continuous pace, losing 80 ticks, or a little more than 1%. This happened after officials present at the G-20 meeting pledged to maintain interest rates at low levels, something that will allow outflows from the U.S. economy and devalue the greenback.

Clearly, as economic stimulus measures remain in place as a recovery begins to pick up, the risk trade is likely to benefit, leaving the U.S. dollar in the dust.