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U.S. Dollar Continues to Attract Selling Pressure

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Oct 19, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The lack of fresh economic reports today gave traders no choice but to look at the trend and resume selling pressure on the U.S. Dollar. The U.S. Dollar resumed its downtrend from the opening of the New York trading session after trying to mount a small comeback late last week. Better than expected earnings or projections for better earnings in the future helped drive up equity prices which in turn boosted demand for higher risk assets. Fed Chairman Bernanke said very little today to boost the Dollar but did say that Washington is concerned about its drop in value. He noted that the U.S. faces a “difficult fiscal situation” which is said to be the cause behind the lack of confidence in the U.S. economy and the Dollar.

    The EUR USD is slowly working its way toward the psychological 1.50 resistance barrier. Traders are uncertain what will happen if this area is breached. Some feel an acceleration is in order while others feel that buying will dry up slightly above this level. Euro Zone finance ministers are meeting in Luxembourg at this time to discuss the fate of the Euro. Most are expected to voice concerns about the rapid rise in price and its potential detrimental effect on Euro Zone exports. No solution to the problem is expected to be presented, but traders are anticipating some commentary supporting a stronger Dollar.

    The GBP USD started the day lower after a story leaked over the week-end that the Bank of England was considering expanding its asset-buyback program. Last week speculators drove up the Pound as comments from a BoE official hinted that it would end the program. By midsession, the British Pound had erased all of its loss and near the close was in position to close higher. Today’s action demonstrates that positive momentum is still present in the market.

    Read full article at ForexHound.com as well as Forex Analysis, Forex Education and exclusive timely market Gann Analysis

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