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U.S. Dollar Rises Overnight on Short-Covering

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 10, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
    Likes Received:
    Today’s sample of Futures Analysis from FuturesHound.com

    The U.S. Dollar is trading slightly better this morning versus most major currencies after the bashing yesterday sent the trade weighted Dollar index to a 15 month low. Short-term indicators are oversold which could lead to a short-covering rally today.
    Yesterday the Dollar was under pressure because over the weekend the Group of 20 decided not to issue a supportive statement and instead agreed to support continued economic stimulus. This led to a move by investors into riskier assets and away from the U.S. Dollar. This trend is expected to remain in the market for the foreseeable future as long as U.S. interest rates remain the lowest in the world. Investors are once again treating the Dollar as the world’s carry currency.
    The December Euro stopped short of a new high for the year yesterday. Despite conditions that warrant a weaker Dollar and stronger Euro, traders may be concerned about possible action to weaken the currency by the European Central Bank if the Euro gets to hot.

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

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