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U.S. Dollar Finishes the Month Sharply Higher

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 30, 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 closed out the month of January sharply higher as aggressive buyers helped the Greenback surge to the upside following Friday morning’s better than expected U.S. GDP report. The report which blew out forecasts encouraged traders to buy with both hands as investor sentiment turned more optimistic toward a strong U.S. economic recovery.

    Earlier in the week, the Dollar was bolstered by a more upbeat statement by the Federal Reserve. Although the FOMC left interest rates unchanged, it did change its outlook on the economy from “weak growth” to “moderate growth”. The markets responded by driving up the Dollar in anticipation of higher interest rates and a much better outlook for the economy going forward.

    Most of the time this week, the Dollar showed strength as investors became more optimistic about the U.S. economy, but demand for safety because of concerns over sovereign debt issues in Greece and Portugal also contributed greatly to the rally. These problems are likely to linger over into next week and until a viable solution is reached.

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

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