The US dollar fell back a bit Wednesday (December 16) morning as analysts believe the Fed is likely to leave its key interest rate at zero. New data on consumer prices show little change after 10 months of increases, suggesting inflation is not a big enough concern at this point to warrant an immediate rise in rates.

The US dollar continues to find major low points to reach against major foreign currencies and other speculative investments. Gold is now over $1,200 with some top analysts calling for a quick move through the $2,000 level in the near future. Oil remains near $80.

In two days, sentiments on the economy have improved dramatically thanks to a pair of economic reports. Tuesday (November 24), the gross domestic product was said to have risen by 2.8 per cent from the second to the third quarter.

As the dollar remains weak across the board thanks to renewed concerns about the strength of economy recover, the dollar-yen ratio currently sits just above major long-term support in the 87-88 yen range.

Based largely on dollar weakness and rising oil prices, the Euro is currently worth $1.5018, after reaching a new 52-week high at $1.5051. The same dollar weakness has pushed the Pound back near $1.67, kept oil near or above the $80 per barrel level, and has sent the spot rate of gold soaring past $1,100 to a current rate of $1,115 per ounce.

With unemployment still at historic highs and the state of the economy still fragile, most top economists expect Federal Reserve Chairman Ben Bernanke to announce Wednesday (November 4) afternoon that the Central Bank is keep its key interest rate at its current low point.

The Euro stopped at the resistance established in Friday’s report 1.4772 with amazing accuracy, a stop which was a signal that we are heading to areas below 1.47. And now, there is a resistance that combines the rising trendline drawn from 1.4566, and the falling trendline drawn from 1.4816, and is currently at 1.4725, if price stay below it, we are heading south.