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

Dollar Holds on to Gains during Lackluster Session

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 27, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar managed to hold on to its overnight gains despite a lackluster trading session. Following a couple of overnight events and intra-day economic reports, the Dollar remained range-bound as many large traders stood aside ahead of tomorrow’s Fed FOMC announcement. Traders are looking for the Fed to leave interest rates alone and to continue to leave them low for “a prolonged period of time”.

    The Dollar surged overnight, driven by bearish news out of Asia. The Dollar rallied sharply overnight after a couple of negative economic events drove traders to the safety of the Greenback. The Dollar was up today against European and Pacific Rim nations while falling against the lower yielding Japanese Yen. The initial move to the upside was triggered by Japanese debt issues and more evidence that China was beginning a tight monetary policy.

    Firm U.S. corporate earnings reports coupled with a better than expected U.S. consumer confidence helped weaken the Dollar at one point during the day because of an increase in demand for higher risk assets. Investors didn’t turn outright bearish on the Dollar, but instead realized that the new data was sufficient enough to warrant a lightening of positions. The Dollar also got a boost from the new Obama proposal to freeze the budget in certain areas for three years. This sent a sign to traders that the U.S. was serious about its burgeoning debt situation.

    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.

Share This Page