Friday, July 31, 2009

Recovery Signals Boost Dollar Decline

The US currency ended up trades with a slide as the US economy showed first signals of recovery after the global recession. Today the US government is set to release its figures of GDP expected to decline at a slower pace in 2Q than in 1Q. Global corporate earning reports added to optimism. Participants of Forex market took advantage of the fresh optimism to choose higher-yielding currencies, such as the Euro and Aussie.

Yesterday Germany and the Euro-Zone issued better than expected reports on unemployment and consumer confidence bringing USD decline against EUR reaching 1.4128 level. The markets also witnessed the USD fall versus GBP as British consumer confidence showed optimistic results.

It is expected that today traders will go on trading with yesterday`s optimism. This behavior is expected to drive lower the USD index.

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