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Late Session Surge for Risk Pressures U.S. Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Mar 12, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com


    The U.S. Dollar declined into the close after trading in a tight range most of the day. A strong surge in the equity markets late in the session confirmed investor demand for risky assets, thereby pressuring the lower yielding Dollar.

    At times on Thursday, traders were demanding lower yielding currencies in response to an overnight report that showed China’s consumer-price index spiked higher in February. Investors speculated that its central bank would have to raise interest rates to curb economic growth. The inflation report showed an acceleration from the year-earlier month, to a greater-than-expected pace of 2.7%. The higher growth was tied to greater-than-expected gains in fixed-asset investment, bank lending, and industrial production.

    The Dollar extended its earlier gains after economic reports showed the trade deficit unexpectedly shrank and weekly initial claims for jobless benefits fell. These gains were short-lived however, as investor demand for higher-yielding assets picked up late in the trading session.

    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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