Excerpt from: Forex Analysis
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| January 05, 2009 | | Euro interest rate cut expected | Right now, euro weakness in forex trading could be worth more attention that the continued U.S. dollar rally. This is because the euro zone appears to be threatened on a number of levels by economic data.
Right now, deflation is one of the major concerns for the euro in forex trading. Instead of holding steady -- or even raising -- when it comes to euro zone interest rates, cuts are back on the table. Action Forex reports on the euro in forex trading:
Euro's rally in Dec was fueled by speculation that ECB will pause rate
cutting in Jan but markets are getting increasingly doubtful on this.
More Euro long positions are closed after ECB Vice-President Papademo's
comment that deflation is becoming a convern and ECB will "do what is
necessary, in terms of the timing and in terms of the size (of interest
rate policy action) to ensure that price stability is preserved."
| Topic Tags: currency trading, economy, euro forex trading, euro rate cut, euro zone, forex trading, interest rate cut, interest rates | |
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