223538 Resource 119232 120646 120646 1231948684188 1231948684188 Controlled U.S. Dollar Forges Ahead in Currency Trading

After earlier weakness, the greenback is gaining again in forex trading

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">Earlier today, the <a href="http://www.actionforex.com/fundamental-analysis/daily-forex-fundamentals/dollar-somewhat-lower-2009011475000/" target="_blank" title="U.S. dollar, dollar currency trading, currency trading, greenback forex trading, forex trading, currency trading FX market, retail sales, economy, recession">U.S. dollar was showing some weakness</a> in <span style="font-weight: bold;">currency trading on the FX market</span>. Now, however, that weakness has largely disappeared -- despite <a href="http://money.cnn.com/2009/01/14/news/economy/dec_retailsales/index.htm" target="_blank" title="U.S. dollar, dollar currency trading, currency trading, greenback forex trading, forex trading, currency trading FX market, retail sales, economy, recession">poor retail sales data</a>.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Or maybe because of it.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">All the rules seem to be changing. While <span style="font-weight: bold;">poor retail sales data</span> is an indicator of problems in the economy, and should normally undercut a currency in <span style="font-weight: bold;">forex trading</span>, the opposite effect seems to be happening. The poor retail sales data is showing that the economy is indeed in trouble -- and that the <span style="font-weight: bold;">recession</span> may linger -- but the reaction is quite different.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">The evidence of poor retail sales is instead stoking <span style="font-weight: bold;">risk aversion </span>fears. Traders are making a flight to safety, and in the current environment, that means favoring the currency that is considered most stable. The <span style="font-weight: bold;">U.S. economy</span> may be faltering, but it is still seen as the best economy in the world.</span></font><br /> 9 application/xml false currency trading currency trading FX market dollar currency trading economy forex trading greenback forex trading recession retail sales U.S. dollar Technical analysis for currency trading http://www.fxstreet.com/technical/analysis-reports/technical-summary-for-majors/2009-01-14.html Currency trading on the FX market http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.5) Gecko/2008120121 Firefox/3.0.5 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 119232 blog blogsite/GFTForex/web