The dollar softened against the world’s major currencies on Wednesday after the Federal Reserve said it would expand its quantitative easing program with the aim of bolstering U.S. recovery. Prior to Wednesday, the Fed had been running a quantitative easing program under which the U.S. central bank bought USD40 billion in mortgage-backed securities a month from banks on an open-ended basis to spur recovery. Going forward, the Fed will purchase an additional USD45 billion in Treasury holdings to further fuel recovery.
While on the other hand, Gold futures added to gains during U.S. morning hours on Wednesday, hitting a one-week high as the U.S. dollar came under pressure amid expectations of more quantitative easing from the Federal Reserve when it concludes its policy-setting meeting later in the day. but all gained were shaded by the end of the day as the precious mated retreated back.
To download complete report; CLICK: Forex and Gold Daily Report 13 December 2012