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Risk Seeking Investors Providing Buying Power for EUR USD Surge

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jul 16, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The EUR USD traded higher throughout the day driven by increased appetite for risk. Global equity markets also traded better which led investors to seek higher yields in more risky currencies like the Euro.

    Stock futures markets led by the S&P 500 Index were sharply higher boosted by strong earnings from Intel Corp. and Goldman Sachs. The recent data releases and earnings reports out of the U.S. have been buoying equity markets while putting pressure on both the U.S. Dollar and lower yielding Japanese Yen versus the Euro.

    Despite being nervous over earnings results from other leading U.S. banks later this week, risk seeking investors are providing the buying power which is supporting the current rally. This surge to the upside is flying in the face of investors who are still approaching the financial markets with caution. Many investors are still far from convinced that the Euro Zone and U.S. economies are on a steady path to recovery from the deep recession that has been gripping both economies.

    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.

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