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Dollar Holds Gain as Traders Await Friday’s U.S. Employment Report

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 8, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar held on to most of its gains as traders await Friday’s U.S. employment report. On Thursday, the Weekly U.S. Initial Claims report showed that fewer workers filed for unemployment benefits last week. This news helped boost an already strong Dollar. The ability to hold on to its gains into the close may be an indication that investors are anticipating a friendly U.S. Non-Farm Payrolls Report tomorrow. Volume has dropped off noticeably which is a strong indication that the ranges for the day have been made.

    The U.S. Dollar erased early overnight losses to move higher after China shocked the Forex markets with a surprise hike in interest rates. China’s move to curb excessive lending and curtail price increases drove traders into lower yielding, safe haven currencies. China’s central bank sold 3-month bills at a higher interest rate for the first time in 19 weeks.

    The EUR USD traded lower throughout today’s session as demand for higher risk assets dropped following the rate hike in China. At the close, the Euro was hovering near a retracement zone at 1.4350 to 1.4319.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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