Excerpt from: Forex Analysis
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| May 27, 2010 | | U.S. dollar falls as forex traders look for higher yields | Yesterday, financial markets plummeted on the news that China might begin selling off European debt. However, Beijing has denied those rumors. As a result, the euro is being propped up in forex trading, and a risk rally is well underway.
The U.S. dollar is heading lower as forex traders look for higher returns for their investments. Investors are largely ignoring the news that Quarter 1 GDP had to be revised downward -- something that would normally spark some risk aversion.
Not today, though. Investors are so relieved about the news regarding China, and also about the new regarding Spain's austerity vote, that they are ready for a little risk. As a result, the euro is rallying in forex trading, buoyed up by the positive news.
| Topic Tags: China, currency trading, European debt, forex traders, forex trading, risk rally, Spain, U.S. dollar | |
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