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Dollar Falls versus Basket of Currencies

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Oct 6, 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 closed lower against a basket of currencies as appetite for risk drove traders away from the lower yielding Dollar into the higher risk currencies.

    The strong trend against the Dollar was set overnight when the Reserve Bank of Australia surprised most analysts with a 0.25% rate hike. A story then began circulating that a group of nations including Saudi Arabia and China had begun secret talks to replace the Dollar as the crude oil pricing mechanism. Traders reacted to both of these news events by selling the Dollar.

    The move by the RBA sent a signal to the markets that the Asian-Pacific Region may be in a better position than the U.S. and Europe to mount a strong recovery out of the recession. In addition, some traders believe the Euro Zone is in better shape than the U.S.

    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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