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GBP USD Gets Slammed on Banking Concerns

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 18, 2009.

  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 finished the week with a strong rally as traders reduced their exposure to higher-yielding assets. Global financial system worries encouraged traders to pare positions. Additional selling pressure came from position-evening ahead of next week’s U.S. Fed open market committee meeting.

    The GBP USD was the big loser today as shorts dominated this currency pair as stories circulated that the Lloyds Banking Group Plc lacked sufficient capital. Traders reacted negatively to the news that Lloyds may exit a government program designed to insure nearly $425 billion of its risky assets. This story helped trigger weakness throughout the Forex markets as traders returned to the safety of the U.S. Dollar.

    The EUR USD started the day firm but finished on the downside as traders reduced exposure to higher risk assets. The Euro was able to finish the week on the upside, but today’s weak close and negative feelings toward the global banking system may trigger weakness next week or at the least put this currency into a consolidation pattern.

    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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