The Trend of USD Would be Decided by Federal Reserve

The forex rate of US dollar against Euro went up in the forex market as American economic data was much better than expectation. US non-farm unemployment decreased much on January in 2011, so the forex investors have more confidence on the measures for economic prospects by Federal Reserve. Meanwhile, the forex investors hoped that Federal Reserve could reduce the scale of the second round of Quantitative easing policy.

In addition, the forex rate of Euro versus US dollar went down in the forex market as the bond yield of Portugal continued to rise recently. The investors worried that Portugal might be the next one, who would get assistance from Federal Reserve.