1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

U.S. Dollar Closes Mostly Higher Boosted by Risk Aversion

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 2, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar finished the first full session back from the holiday week-end by posting gains against most major currencies. Risk aversion was the theme today as traders punished the Euro and the commodity linked-currencies while seeking shelter in the Japanese Yen and believe it or not the British Pound.

    The GBP USD soared 1 percent Tuesday boosted by speculation that U.K. insurer Prudential may withdraw its takeover bid of AIA. Many traders saw this as a positive for the British Pound because it eliminated the debt load that Prudential was expected to take over had the deal gone through.

    The bearish action in the Euro also helped the British Pound by driving traders into the relative safety of the U.K. Gilt market. Investors seem to be feeling a little more optimistic about the U.K. economy and debt obligations now that the new government has taken positive steps toward cutting the deficit and reducing borrowing. If the current upside momentum continues, then look for a possible short-term drive to 1.4810 over the near-term.

    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.

Share This Page