Monday, September 14, 2009

No Positive Future for Dollar

Going short on the US currency brought lots of profits for traders last week. The USD continued its fall versus the EUR and other major Forex currencies. This fall accounted for 300 pips versus EUR, 400 pips versus the GBP and 350 pips versus the Japanese currency.

Another fall for the greenback was reasoned by negative US data. The gap between import and export increased by 16 percent or $32 billion, the largest difference since 1999. The U.S Consumer Credit fell by 21.6$ billion in July. Unemployment rate is constantly getting to 10 percent rate. It looks like until the employment condition will take a turn for the better, the Dollar might continue to weaken.At the beginning of the previous week market analysis showed a modest decline, but the final result appeared to be well below all expectations.

This week is full of important business events including the Consumer Price Indices, the Retails Sales Indices, the Producer Price Induces, the Long-Term Purchases, the Building Permits and the weekly Unemployment Claims.

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