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

Dollar finishes higher led by Consumer Confidence Surprise

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Mar 31, 2010.

  1. forextrends24

    forextrends24 New Member

    Joined:
    Mar 27, 2009
    Messages:
    252
    Likes Received:
    0
    Today’s sample of Forex Analysis from ForexHound.com


    The Dollar reversed earlier weakness to close higher after U.S. consumer confidence data came out better than expected. The friendly report served as further evidence that the U.S. economy may be recovering faster than the Euro Zone. This means the Fed is likely to begin raising interest rates before the European Central Bank.

    Upside momentum slowed considerably overnight which helped weaken the Euro on the New York session opening. The buzz over the European Union/International Monetary Fund Greece bailout plan seemed to be fading also. As expected, the EUR USD broke back into a minor 50% retracement level at 1.3402. This price held, but the short-covering rally following the test of this level was weak.

    Traders also reacted to a shift in the interest rate spread between U.S. Treasury and German financial instruments. 10-Year Note yields rose above the German Bund making an investment in U.S. Treasuries a more attractive investment. This also helped to pressure the EUR USD throughout day session.

    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.
     
Loading...

Share This Page