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U.S. Dollar Reverses Early Session Weakness

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Nov 23, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    Strong selling pressure from Europe and Asia put pressure on the U.S. Dollar early in the trading session. After early New York session weakness plunged the Dollar Futures Index toward last week’s low at 74.75, shorts began covering their positions when the U.S. reported better than expected existing home sales.

    By the opening, the Dollar had retraced more than 50% of last week’s rally following bearish comments over the weekend by St. Louis Fed President James Bullard who restated his case for extending the central bank’s mortgage buyback program. Bullard said, “unemployment is high, and labor markets are lagging.” This comment triggered the early sell-off in the Dollar because it strongly supported the Fed’s stance that interest rates would remain low for a “prolonged period”.

    The Euro once again took a run at the psychological resistance at $1.5000 before sellers stepped in. The rally in the Euro was triggered by Bullard’s bearish Dollar comments and last Friday’s news that European Central Bank would take steps to make it tougher for banks to make loans.

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

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