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Renewed Appetite for Risk Drives Dollar to 15-Month Low

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 1, 2009.

  1. forextrends24

    forextrends24 New Member

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

    Support for the U.S. Dollar continued to erode all day triggering a collapse in the Dollar Index to near last week’s low at 74.27. A break through this level sets up a further decline to 73.67 which would match the April 2008 bottom.

    Renewed appetite for risk helped drive the U.S. Dollar to a 15 month low against a basket of currencies on Tuesday as concerns about debt issues in Dubai subsided, leading to increased demand for higher yielding currencies. Further weakness in the Dollar was attributed to a report that Chinese manufacturing increased at its fastest pace in five years.

    The weakness in the Dollar helped boost commodity and stock demand as investors once again felt comfortable adding more risk to their portfolios.

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

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