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U.S. Dollar Reverses Early Weakness

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 8, 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 posted a strong reversal to the upside today following the release of a better than expected U.S. Non-Farm Payrolls Number. The report which showed a loss of jobs less than economists had estimated sent a signal to traders that the U.S. may be the first major economy to recover from the recession.

    Traders most likely bought the Dollar in anticipation of the Fed announcing the end to its easy money policy and perhaps introducing an exit strategy which includes a rate hike. The Fed holds a two day meeting next week with an announcement due on August 12th.

    Traders seemed to be buying the Dollar in anticipation of the U.S. gaining an interest rate advantage over currency markets which still have rates at historically low levels.

    The GBP USD posted a closing price reversal top on a weekly basis which could be setting up the start of a minimum 2 to 3 week correction of the current uptrend. Earlier in the week, the Bank of England started the break with an announcement to add more funds to its quantitative easing program. Today’s bullish U.S. unemployment report helped accelerate the move to the downside.

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

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