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Dollar Tumbles against Euro and Commodity-Linked Currencies

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jul 6, 2010.

  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 hit a six-week low against the Euro driven by greater demand for risky assets and a hawkish comment from the Reserve Bank of Australia. A mid-morning report showing that the U.S. Services Sector slowed last month also contributed to the Euro’s rally on the prospects of a weaker outlook for the U.S. economy.

    The recent strength in the Euro versus the Dollar is an indication that investors are adjusting positions and absorbing the shift in the recent economic data. Today’s turnaround in many of the Forex markets demonstrates investor willingness to buy riskier assets.

    Recent weak U.S. economic releases have encouraged traders to move into a market psychology where poor data triggers Greenback weakness. Earlier in the year, investor sentiment was the opposite. At that time, weak data triggered flight-to-quality buying of the Dollar.

    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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