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Weaker Dollar Continues to Drive Risky Assets Higher

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 17, 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 closed lower against most major currencies this afternoon as investor demand for higher yields drove up risky assets. The strong rally continued in the equity markets boosted by yesterday’s favorable comments from Fed Chairman Bernanke and today’s positive words from investor Warren Buffett. Gold also surged to the upside on the prospect of a long-term weaker Dollar.

    Despite economic reports showing that the U.S. economy is recovering at a faster pace than the Euro Zone, investors continued to drive the EUR USD higher for the year. Traders have become comfortable with the thought that in spite of the improving economy, the Fed is likely to keep interest rates at historically low levels for some time to come. With the U.S. posting the world’s lowest interest rates, continue to look for strength in the Euro.

    Technically, the market reached a new high for the year while breaking out over a major retracement level at 1.4623. Taking out the December 2008 top at 1.4719 was also a sign of strength. The new upside target is 1.4866. The swing chart indicates that the trend is up as long as support holds at 1.4045.

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

    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.

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