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U.S. Dollar Finishes Lower Following Signs of European Recovery

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

  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 finished lower on Tuesday following reports from Europe signaling an economic recovery may be starting. The EUR USD rebounded after a German investor confidence report improved more than estimated. This news combined with last week’s GDP report showing growth in France and Germany may be enough to ignite the start of a rally. Despite support from the economic numbers, trader appetite for higher risk assets has to pick up or this rally will fizzle.

    Based on the main range of 1.4447 to 1.4045, look for a possible retracement to 1.4246 to 1.4293.

    A report showing U.K. inflation was better than expected triggered an early session short-covering rally in the GBP USD that gained strength throughout the day. Traders had been looking for inflation to decline based on the recent comments from the Bank of England Governor Mervyn King. Lately he has been hinting that the slow down in the economy would continue.

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

    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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