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Greenback Falls Despite Geithner’s Call for Strong Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 2, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar finished lower, pressured by increased appetite for risky assets, despite a call from Treasury Secretary Geithner for a stronger currency. Trading remained subdued today ahead of central bank meetings on February 4th and the U.S. Jobs Data Report on the 5th.

    Technical factors helped draw selling pressure to the Dollar. At the start of the week, the Dollar Index, a trade weighted basket of currencies, was at overbought levels based on the Relative Strength Index and the Stochastics Oscillator. In addition, traders remain less skittish this week about seeking higher risk assets. Low volume also contributed to the loss in the Dollar. Noticeably absent was a major stopper in the market.

    The Dollar was under pressure from the New York opening, following a weak overnight showing. A comment from Treasury Secretary Geithner regarding a tighter U.S. budget and a stronger Dollar did trigger a pause in the weakness about mid-session, but that move did not materialize into anything substantial. Higher demand for gold, crude oil and equities held the Dollar in check most of the day and pressured it into the close.

    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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