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Dollar Rebounds into Close after Fed Paints Gloomy Picture

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jul 15, 2010.

  1. forextrends24

    forextrends24 New Member

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

    It looks as if U.S. Dollar bears have a decision to make after the Fed Minutes painted a gloomy picture of the economy. Either the Dollar will decline because of the Fed’s outlook or the Dollar will rally because of renewed risk aversion.

    For the past few weeks, worse-than-expected U.S. economic reports have driven investors out of the Dollar and into foreign currencies but this trend may becoming to an end as traders assess the Fed’s new outlook for the economy.

    Late Wednesday the Dollar began a small comeback following the release of the June Federal Open Market Committee Minutes. In the report, Fed officials issued an updated economic forecast calling for a downward revision of the Gross Domestic Product. In April, the Fed pegged the GDP growth rate at 3.2 percent to 3.7 percent. Today’s report showed a downward revision of GDP to 3 percent to 3.5 percent.

    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.

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