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Chart Pattern Suggests Further Weakness in Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 15, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar finished lower against a basket of currencies for the fifth straight day in sluggish trading. Contributing to the weakness were reports that U.S. Jobless Claims rose last week by the largest amount in five weeks and U.S. Retail Sales were down.

    Both reports show that employment is still a major issue affecting the economy as well as consumer spending. Traders pressed the Dollar most of the day and wouldn’t allow it to get away by too much on the upside. Today’s economic data suggests the Fed will keep interest rates lower for a prolonged period of time which is once again driving up demand for higher yielding assets.

    The European Central Bank left interest rates at 1% as expected. The EUR USD weakened a bit after ECB President Trichet failed to spark interest in the upside following his assessment of economic conditions in the Euro Zone region. The trading range was tight most of the day following the report. The chart indicates 1.4680 is still a possible upside target.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    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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