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U.S. Dollar Posts Gain on Concerns Fed May End Stimulus Programs

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 22, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com


    The U.S. Dollar finished up for the day in a move which began on Friday. At that time investors began to pare positions ahead of this week’s FOMC and G-20 meetings. Traders are lightening up their short Dollar positions in anticipation of an announcement by the Fed to end its stimulus programs. Some traders also believe that the Fed is working on an exit strategy. Investors will also be watching the G-20 meeting later this week. Among the topics to be discussed are government stimulus and the Dollar as a reserve currency. Investors expect to get clarity from other central banks as to the timing and the impact of ending government stimulus plans. In addition, there will most likely be discussion about reducing the U.S. Dollar’s role as the global reserve currency.

    The EUR USD is consolidating after showing several weeks of strength. The Euro still holds an interest rate advantage over the Dollar so don’t expect it to get too bearish. Most of the movement is just housekeeping ahead of the Fed report on the 23rd.

    Concerns over the U.K. financial system continue to weaken the GBP USD in a move that started late last week. The acceleration to the downside is being triggered by reports that Lloyds Banking Group Plc may need additional capital. This issue will compound the Bank of England’s mandate to get the economy back on track.

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

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