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Equity Markets Trigger Forex Surge but Markets Fade into Close

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 13, 2009.

  1. forextrends24

    forextrends24 New Member

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

    An early morning rally in U.S. equity markets sparked a strong surge in Forex markets on Wednesday but a late session break has many traders wondering if today’s rally was just short-covering.

    Today’s equity market rally began when better than expected earnings from Macy’s and Toll Brothers may have caught traders by surprise. This triggered a short-covering response in the thinly traded Forex markets. Based on the overnight action, it looked as if traders had taken the day off ahead of the FOMC meeting.

    Although the rallies in the Forex market merely amounted to retracements of the recent declines, they demonstrate how fast these markets can turn without much news when there are no major stoppers in the market.

    Read full article at ForexHound.com as well as Forex Analysis, Forex Education and exclusive timely market Gann Analysis

    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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