Dollar or USD fell against most of the currencies today after the Federal reserve Officials (also know as Feds) announced that the interest rates would remain low for some time.

This was a significant announcement and it rallied the stocks, but had a hit on USD.

The reasoning behind keeping the interest rates low was good from government point of view since it will keep the inflation in US Economy at acceptable level. The consumers at large can have more access to loans at affordable levels.

But, this was not a good position for people who had the trades opened in favour of USD. The reason currency pairs went against USD after the announcement is that traders started seeing other currencies to yield more interest and so to invest their money. Thats why they closed their USD favoured trades and started putting their money in currencies where the interest was higher.

Rise in US Stock market also was not good for USD since traders starrted seeing another market where they can diversify their assets.

This underlines another area when it comes to trading - Never Day Trade when a big fundamental announcement is underway. All the technical analysis that you will not matter when such news come out.

And the riskier part is that you will not have opportunity to save your trade since the market moves hundreds of pips in matter of seconds when such forex news come out.

Thats why it is crucial to be aware of the important events mentioned in forex news calender so that you can identify the times when you should stay away from trading.

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