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Turnaround in Equity Markets Pressure U.S. Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Mar 23, 2010.

  1. forextrends24

    forextrends24 New Member

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

    A turnaround in U.S. equity market pressured the Dollar on Monday as traders sought risk in higher yielding assets. Overnight, the Dollar traded weaker, driven down mostly by traders taking protection in the lower yielding Dollar and Japanese Yen

    The Dollar erased earlier gains and was under pressure most of the New York trading session after U.S. equity markets rallied as Wall Street celebrated the passing of the health care reform bill. The inability to follow-through to the downside in the equity markets and the subsequent rally encouraged traders to dump the Dollar in favor of more risk.

    Other factors affecting the Dollar on Monday were concerns over the Greek financial situation and an interest rate hike by India late last week. Traders initially pressed the Euro lower on expectations the European Union will fail to agree on an aid package for Greece. The Reserve Bank of India unexpectedly raised borrowing costs on March 19th. This helped support the Dollar as investors boosted demand for safe investments. Traders fear that the hike in India means that China will soon do the same.

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

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