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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

    Mar 27, 2009
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    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

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