After starting the week under heavy selling pressure, the euro found some relief during the New York session when health stocks surged amid the new U.S. healthcare legislation.
Obama’s health care legislation passed by the U.S. House of Representatives on Sunday evening should allow a large portion of uninsured Americans to receive medical coverage, which boosted drug and health care stocks.
As a result, the dollar dropped all across the forex market.
The EUR/USD plunged as low as 1.3460 before it rebound to finish the day above the psychological 1.3500 level.
The AUD/USD rebound strongly off the .9000 support level to go back near .9200.
On another hand, the Bank of England’s Governor King gave a pessimistic outlook on UK’s economical growth in a lecture to the Royal Society in London.
"The reality is that even if growth rebounds, the level of activity is still very likely to remain weak for a considerable period compared to the peak at the start of 2008," King said. "The economic environment is likely to continue to feel far from normal for some time."
But the Governor’s comments did not affect much the pound. The GBP/USD profited from a weakening dollar like other majors and move back to the 1.5100 region.
After stepping away from parity, investors re-triggered their short orders on the USD/CAD. The pair is now consolidating at 1.0200.
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