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Dollar Gains in Tight Rangebound Trade

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 29, 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 higher on Tuesday against most majors as traders once again curtailed demand for higher risk assets because of a weaker than expected U.S. Consumer Confidence Report and another break in the equity markets. Investors are shying away from risky asset trades because of perceptions that the global economic recovery may not be as robust as previously estimated.

    The EUR USD lost ground today because of falling demand for higher risk assets. Comments from European Central Bank President Trichet expressed his concerns about central banks ending their stimulus plans too prematurely. The main trend turned down late last week and traders seem content with pushing this market down to a key retracement zone at 1.4444.

    The GBP USD gained ground today on the heels of two friendly U.K. economic reports. Today it was reported that U.K. Retail Sales increased to its highest level in five months. Another report showed a better than previously estimated second quarter U.K. GDP Report. Shorts covered on the news and drove the British Pound higher. The rally, however, is expected to be short-lived since these two reports are not enough to turn the trend around in the Pound. Longer-term traders believe that the Bank of England will have to reduce its stimulus program before this market can mount a strong rally.

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

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