1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

U.S. Dollar Suffers Huge Losses

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Aug 2, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
    Likes Received:
    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar suffered huge losses against most major currencies following overnight news regarding a strengthening global economy and weaker U.S. business conditions in July. Fed Chairman Bernanke added to the bearishness by painting a gloomier forecast for the economy.

    Strength in the global manufacturing sector gave investors little reason to lock up lower yields, driving investors into higher yielding assets. The report also forced investors to question the strength of the U.S. recovery.

    The key question remains, how long will investors continue to seek risk? At some point, like they have in the past, investors will turn risk averse, seeking protection in the lower yielding Dollar and Yen. With the U.S. Non-Farm Payrolls Report due on Friday, the current break in the Dollar may be investors piling on for an exhaustive break which may come to a screeching halt if the U.S. jobs number comes out weaker than expected. Right now the break in the Dollar appears to be too easy with no big stopper in the way.

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

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

Share This Page