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Risk Appears to be Back On Ahead of Next Week’s U.S. Employment Report

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 29, 2010.

  1. forextrends24

    forextrends24 New Member

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

    Although it is a holiday week, volatility should be high especially during the beginning of the week. After a mid-week slowdown, look for volatility to increase again on Friday when the August U.S. Non-Farm Payrolls report is released.

    A key asset allocation shift took place in the markets earlier in the week that played a role in today’s markets. On Wednesday, T-Bonds topped and stocks bottomed simultaneously. This was the signal that risk was back on, but it took the positive comments by Bernanke today to give traders a little clarity and conviction to play the long side of the equities. Stocks should continue their rally next week which should keep pressure on T-Bonds and the U.S. Dollar. The only market likely to weaken against the Dollar will be the Japanese Yen. A shift in sentiment and an intervention could tank the Yen.

    High volatility was the theme on Friday in the Forex, equity and debt markets. Today’s trading session can basically be described as a two-sided affair. Surprised? No. The markets were ready to move, but were just waiting for a few kind words from a key Fed official.

    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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