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Money Moves to U.S. Dollar on Debt Concerns.

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 9, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar continued to strengthen, but not because of the possibility of higher interest rates like last Friday’s rally, but because of debt concerns and credit ratings.

    Investors poured money into the Greenback in a flight-to-quality rally after Moody’s cut the credit ratings on six Dubai state-linked companies. Moody’s based its decision on the assumption that it cannot assume the government will back the debt of these companies.

    In addition to Dubai’s credit downgrade, Moody’s also issued a stern warning that it may cut the U.S. and U.K. credit rating to below Aaa. They also added, however, that both of these nations are “resilient” but nonetheless risk an eventual downgrade if positive steps aren’t taken to shore up debt finances.

    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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