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U.S. Dollar Gains as Traders Flee Higher Yielding Assets

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 17, 2009.

  1. forextrends24

    forextrends24 New Member

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

    On Monday the U.S. Dollar posted strong gains against most major Forex markets with the exception of the Japanese Yen as investors exited higher yielding assets following an overnight sell-off in the Chinese equity markets.

    Early this morning Japan reported economic growth in the second quarter that was below expectations but nonetheless signaled an end to the recession. This news wasn’t good enough for investors as they want to see sustainable evidence that a recovery is indeed taking place.

    Asian markets sold off after the news from Japan with the Chinese market leading the way. Traders have also become concerned about the Chinese economy. For months China has been used as a barometer for global economic growth. Their stimulus plan has led to increased demand for commodities as well as increased stock market and loan activity. Problems could arise if Chinese regulators decide to tighten up lending and curtail excessive speculation.

    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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