1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Investors Using U.S. Dollar for Funding Riskier Assets

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 11, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar finished lower against most major currencies on Friday as investors continued the trend of funding riskier assets with the lower yielding Dollar. The Dollar also took a hit following the release of a better than expected University of Michigan Confidence Survey. News that China’s industrial output rose 12.3% was also a catalyst contributing to the Dollar’s weakness.

    The EUR USD finished slightly lower on Friday but up close to 2% for the week. Today’s sell-off was technically based as this currency pair hit a key retracement level at 1.4622, encouraging long traders to take profits. Appetite for higher yielding assets was the primary reason behind the strong surge in the Euro this week.

    The GBP USD continued its strong up move today as this market is basically playing “catch up” following last month’s huge sell-off. Yesterday’s news that the Bank of England would leave bank deposit rates unchanged helped fuel today’s rally. Despite the current rally, the Pound should continue to lag the rest of the major currencies until the U.K. economy turns a corner or the BoE reduces government stimulus.

    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.

Share This Page