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Auction Announcement Weakens Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 6, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    Today’s trading in the Forex markets featured choppy, two-sided trading. Early in the New York session the Dollar strengthened as a pair of bearish U.S. economic reports sent the Dollar higher and the stock market lower. Later in the session, the Treasury announced another $75 billion auction. This news triggered a late session sell-off in the Dollar.

    Today’s U.S. ISM report fell more than expected indicating that the economy may not be as strong as previously estimated. In addition the ADP employment report showed a loss of 350,000 jobs in July which is an indication that Friday’s Unemployment Report will show a further rise in the jobless rate. Both of these reports contributed to the early strength in the Dollar as traders cashed in their long higher yielding currency positions.

    The GBP USD was the strongest currency pair. This market was buoyed by speculation that the Bank of England would most likely announce the end of its asset buyback program. This five month program provided liquidity and economic stimulus when needed, but now that the economy is turning around may not be necessary.

    Read full article at ForexHound.com as well as Forex Analysis, Forex Education and exclusive timely market Gann Analysis

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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