USD Trading Outlook (04-11-2010)

U.S. Dollar Trading (USD) was sent into a frenzy as the FOMC decided on a bold move to purchase long term securities to the sum of $600 Billion by the end of the second quarter in 2011. Whilst maintaining existing policies and re-investing proceeds from its mortgage related holding to purchase further treasury debt, bringing the figure closer to $850 Billion ($110 Billion a month). The plan to purchase further securities is an attempt to lower borrowing cost for business and consumers, in an effort to inject fresh stimulus into the economy. The market struggled to digest the decision at first glance, as the USD whipped around against most majors. In other news ISM services was released at 54.3 above forecast of 53.5. US share markets were volatile before ending the day in positive territory with the Dow Jones 0.24%, S&amp P 0.27%, NASDAQ 0.27%. Jobless claims headlines US data on Thursday.