USD Trading Outlook (16-03-2011)

U.S. Dollar Trading (USD) an extremely volatile day in the markets began with massive selling in the Asian session on fear of a nuclear meltdown in Japan resulting the third biggest fall in history on the Nikkei. The USD and YEN both found support from safe haven bids. The market then reversed sentiment and direction at the hand of the FOMC statement which once again stated rates in the US would remain low for an &lsquo extended period&rsquo . US stocks pared losses into the close and the USD experienced heavy selling pressure. In US stocks, DJIA -137 points closing at 11855, S&amp P -14 points closing at 1281 and NASDAQ -33 points closing at 2667. Looking ahead, February Housing Starts forecast at 0.57mn vs. 0.596mn previously.