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Inability to Hold 1.20 weakens Euro into Close

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 10, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The Dollar rose against the Euro late in the trading session after the release of the Fed’s Beige Book. The business survey showed subdued U.S. economic growth which led speculators to believe the Fed won’t be raising interest rates soon despite what investors had earlier interpreted from Chairman Bernanke’s comments.

    Some traders also attributed the break to position evening ahead of the European Central Bank’s policy meeting on Thursday. Although the ECB is expected to leave interest rates unchanged, investors are worried about its statement and the post-meeting comments from ECB President Trichet. The statement is expected to contain bearish talk about the near-term growth of the Euro Zone economy. Trichet is expected, however, to sound more upbeat as he tries to unite the Euro Zone nations.

    From a technical perspective, the inability to hold above the 1.20 psychological support encouraged weak longs to throw in the towel, triggering a hard break into the close.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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