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U.S. Dollar Finishes Flat after Mid-Session Weakness

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 25, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar regained most of its mid-session loss to finish only slightly worse than Tuesday. Comments from Fed Chairman Bernanke triggered an early session break after he reiterated the Fed’s stance that interest rates would remain low for an “extended period”.

    Bernanke also emphasized that last week’s discount rate hike was not an indication of monetary policy tightening. This was a concern for most investors who wanted the Chairman to give a few clues as to the timetable of additional hikes later in the year. Based on the Fed’s assessment of the economy, it is very likely that the Fed will leave interest rates unchanged for the rest of the year.

    The lack of signs of sustainable growth in the economy is what is keeping the Fed from hiking rates. This is also what initially drove the Dollar lower. In addition, traders seemed to be squaring up positions after over-reacting to last week’s surprise hike in the discount rate.

    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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