Today’s sample of Forex Analysis from ForexHound.com
The U.S. Dollar finished mixed against most major currencies after erasing early session gains against some markets. Early in the trading session, the Dollar was up as traders sought safety and lower yields following a report that showed China’s GDP was less than analyst estimates. Some traders took this as an indication China was going getting ready to end its stimulus program early since the GDP report showed the economy was growing at last year’s pace.
Although China’s economic growth report set the early tone for the day, the inability to break the U.S. equity markets following yesterday’s late session sell-off sent short-scrambling and attracted fresh buying as aggressive investors sought higher yielding currencies. This caused a few currencies to close up against the Dollar and a handful to close well off their lows.
The EUR USD finished above $1.50 as traders bought the Euro after an early morning break. Traders are being careful not to trigger too much volatility in this market so that they don’t attract the wrath of the European Zone Finance Ministers. Regaining $1.50 after weakening below it throughout the session is a sign of strength. Look for traders to continue to try to build support above this psychological price level. As long as there is demand for higher yielding assets look for the Euro to continue to move higher.
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U.S. Dollar Finishes Mixed After Giving Back Some
Posted - October 22 2009 : 19:13:43
