Thursday, July 23, 2009

Dollar Outlook Suffers from Concerns over U.S Monetary Policy

July 22, the US Dollar as well as other risk sensitive currencies dropped further against the Euro. However, unsteady equity markets brought risk aversion in forex trades. The Dollar trend is still bearish, as the EUR seems unable to perform a real jump. On Wednesday, the Dollar index was traded at 78.745, down from 78.920 on Tuesday

Pressure on the Dollar is put downwards, as strong performances from the stock markets goes on, as investors shift to riskier higher profiting assets. With rising uncertainty sentiment about the framework of the US monetary and fiscal policies, particularly in light of newly designed health care reform, the outlook on the Dollar looks very weak despite the Fed's and Treasury's guarantees.

Among toady`s important economic events are expected from the U.S, including the Unemployment Claims at 12:30 GMT and the Existing Home Sales at 14:00 GMT. These indicators are very important since they are leading indicators of economic state and are supposed to create great market volatility.

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