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Sell-off in U.S. Equities Prompts Late Session Dollar Rally

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Nov 2, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com


    The U.S. Dollar was generally weaker during the New York session following the release of a better than expected ISM Factory Report. The report showed that manufacturing was increasing faster than expected. The factory index rose to 55.7% in October. This was up from 52.6% in September and above the pre-report estimate of 53%. The only dark spot in the report was the decline in new orders to 58.5%. It was still above 50 which indicates expansion, but it was down for the second consecutive month.

    U.S. Pending Home Sales rose 6.1%. This number beat estimates as first time buyers rushed to beat the expiration of an $8000 federal tax credit. The Dollar weakened on this report.

    Trading was light and thin throughout the day as the bigger players decided to stand aside ahead of a number of central bank meetings this week. Tomorrow the Reserve Bank of Australia holds its monthly meeting. This is followed by the U.S. Fed on November 4th. The European Central Bank and the Bank of England hold their monetary policy meetings on November 5th. Choppy, two-sided trading could be featured this week as traders lighten up and adjust positions ahead of the news.

    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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