17 Nov, 2009 @ 04:54 pm ET | By Hans S. Nilsson
- The dollar fell and stocks gained on Monday as risk sentiment improved. APEC leaders pledged to maintain economic stimulus and Fed Chairman Ben Bernanke said easy monetary policy will be maintained for the foreseeable future. US retail sales climbed more than expected and business inventories fell less than expected. The S&P 500 rose 15.82 to 1,109.30, the first close above 1,100 since October 2008. The yen gained after the Japanese economy grew more than forecast. Sterling advanced despite November UK house prices falling for the first time in three months. The Canadian and Australian dollars were supported by higher commodity prices.
- The EUR/USD rose for a second day. The gain was temporarily limited after Fed Chairman Bernanke said the central bank is committed to a strong dollar. However, Bernanke was not ready to tighten monetary policy and said the Fed anticipates exceptionally low interest rates are likely to persist for an extended period and that considerable economic challenges remain. The EUR/USD is in a strong uptrend that has been successfully tested several times. There is resistance in the 1.50 area. If this is broken, the EUR/USD will probably rise to the 1.54-area resistance.