Monday, August 31, 2009

Financial Market Update

The previous week appeared to be very volatile for the US currency during Forex trading hours. The USD remained in a tight range 1.4200 and 1.4400 with no clear direction. The greenback performed a bearish activity yesterday as a result of yesterday`s parliament elections. The election outcome also pushed the Japanese yen sharply higher. The USD volatility was reasoned by mixed results from the US economy. The major data release that impacted USD behavior appeared to be the Preliminary Gross Domestic Product (GDP) report. It dropped by 1.0% in Q2 of the year, showing that the American economy continues its recession, despite some optimistic releases.

According to the Wall Street Journal, the DJIA dropped 0.4% on Friday also damped regional sentiment. DJIA futures were recently 50 points lower in screen trade.

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