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U.S. Dollar Pares Gains into Close

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 15, 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 traded sharply higher against most major foreign currencies before giving back some of the gains into the close. Today’s bullishness for the Dollar was set off by an early morning report that showed U.S. consumer sentiment had declined from the last month. Coupled with yesterday’s poor U.S. Retail Sales Report, investors now believe the recovery in the U.S. economy will not be as robust as previously thought.

    Today’s bearish report triggered a flight-to-lower yielding currencies and less demand for higher risk assets. This led to a hard sell-off in the equity markets early in the trading session. The USD JPY lost ground on Friday and for the week as Japanese investors repatriated their funds. Earlier in the week there was speculation that the Japanese were bringing home Treasury redemptions. Today these investors were taking money out of the stock market and reinvesting in lower yielding assets in Japan.

    The GBP USD finished lower for the week. The British Pound is still feeling downside pressure from last week’s announcement to increase the amount of funds available for quantitative easing.

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

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