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Demand for Higher Yielding Assets Helps Canadian and New Zealand Dollars

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jul 15, 2009.

  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 mixed on Tuesday as investors for the most part looked for opportunities in more risky assets. U.S. equity markets rallied increasing the desire to buy oversold higher-yielding assets such as the Australian and New Zealand Dollars while selling the safe-haven Japanese Yen. Some Forex majors changed their daily chart trends to up indicating the potential for more upside movement while others appeared to be headed toward major retracement levels. For the most part the Dollar major remained inside of their six-week ranges.

    The USD CAD opened lower as expected and continued to weaken throughout the day. Risk came back into this market as investors felt confident once again in holding higher-risk, higher-yielding assets.

    As demand for higher yielding assets increased, the desire to hold on to Japanese Yen for protection diminished. Yesterday’s closing price reversal bottom in the USD JPY was confirmed by the follow-through rally today.

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

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