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Increased Demand for Risk Pressures Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 1, 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 lost ground against most of its counter-parts as better than expected U.S. economic data sent money into higher risk assets while paring the safety premium built into the Dollar last week.

    The Dollar was under pressure from the get-go this morning following a round of position squaring overnight in the European and Asian markets. Many traders were lightening up on overbought positions in the Dollar in anticipation of a choppy two-sided trade ahead of this Friday’s U.S. Non-Farm Payrolls Report.

    This morning the Dollar got a little boost following the release of two better than expected economic reports, but was unable to build on the small gains. The reports showed a rise in consumer spending in December and an increase in U.S. manufacturing data last month. Although the Dollar was down today, there will be a point in the near future where the Greenback begins to benefit from the improving U.S. economy.

    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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