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

Dollar Index Reaches 15 Month Low on Massive Selling Pressure

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Nov 10, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar Index reached a 15 month low on Monday following a massive sell-off against most major currencies. The Dollar has gone down since November 3 when it topped at a 50% price at 77.50. The 2008 bottoms at 73.79 and 73.67 are the next downside targets.

    The U.S. Dollar was trounced on Monday after the G-20 finance ministers failed to discuss the value of the Dollar at their week-end meeting, thereby, effectively offering no support. In addition, they decided to keep stimulus measures in place until the global economy can show sustained gains.

    The real selling pressure hit the Dollar after an IMF report issued at the meeting said, the Dollar has moved closer to “medium-term equilibrium” but “still remains on the strong side.” This statement was a shot at the Dollar being overvalued versus the Asian currencies particularly the Chinese Yuan. Aggressive traders seized this moment as an opportunity to increase selling pressure on the Dollar overnight and throughout the New York trading 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