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Concerns about Slowdown in Chinese Economy Boosts U.S. Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 16, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar is trading higher against a basket of currencies as traders seem to have taken risk out of the equation. Earlier in the week, China announced measures to tighten up bank lending requirements. This is raising concerns that China’s economy may slowdown, thus decreasing demand for commodities and other higher risk assets.

    Today’s U.S. economic reports will highlight inflation and production. The Consumer Price Index is expected to show little growth with guesses ranging from 0% to 0.1%. Industrial Production is expected to increase by 0.6% to 71.9%

    Although these reports are expected to produce knee-jerk reactions in the Forex markets today, the primary focus will be on risk sentiment. This week’s move by China is telling the market that interest rates will be rising and the government is getting ready to slowdown, if not end, its stimulus measures.

    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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