1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Dollar Bulls Pinning Hopes on U.S. Economic Recovery

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 22, 2009.

  1. forextrends24

    forextrends24 New Member

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

    Today’s rally in the U.S. Dollar appears to be a sign that risk sentiment may not be the driving force behind price action much longer. The action today suggests that funds are being reallocated into the Dollar and stocks in an effort to capture a rise from the continuing improvement in the U.S. economy. The positive trade in both the stock and Dollar markets is a sign that investors are shifting back to watching traditional fundamentals for direction.

    The EUR USD finished the day lower. The improving U.S. economy and lingering debt issues in Greece, Portugal and Spain are likely to continue to pressure the Euro. Longer-term charts indicate a move to 1.3800 is likely.

    The British Pound closed down for the day. The chart indicates the next potential downside target is 1.5980. Traders are repositioning ahead of Tuesday’s Final Third Quarter GDP report. Economists’ are guessing an upward revision to -0.1% from an earlier guess of -0.3%. This figure will be a positive for the GBP USD and indicate that the U.K is getting ready to return to growth during the 4th quarter.

    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.

Share This Page