Excerpt from: Forex Analysis
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| November 20, 2009 | | U.S. dollar moves higher in forex trading | Risk appetite continues to wane, and that is providing some support for the greenback in currency trading on the FX market. Indeed, the U.S. dollar is moving higher in forex trading as investors look for a safe haven in the midst of continued economic uncertainty.
Even though there are some small signs that economic recovery is underway, the idea of a possible double-dip recession, plus the fact that Jean Claude Trichet has talked about gradual withdrawal from economic stimulus, has investors thinking that they were too optimistic about the speed of economic recovery. This news is sending the euro lower in forex trading and helping the dollar.
As a result, instead of staying in equities, some are turning to the U.S. dollar in forex trading. Gains have been fairly limited, though, as the fact of a pending economic recovery remains uppermost in many minds.
| Topic Tags: currency trading, dollar forex trading, economic stimulus, forex trading, FX market, Jean Claude Trichet, U.S. dollar | |
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