Friday, 29 October 2010

U.S. Dollar Slips in Forex Trading

U.S. Dollar Slips in Forex Trading

Gold prices, optimism pressure greenback in currency trading
The U.S. dollar, after enjoying a bit of a rally recently, is now slipping again in forex trading on the currency market. Today's developments are pressuring the greenback a bit in currency trading.
Gold prices are moving higher, and that is putting some pressure on the dollar, which often moves inversely to the precious metal. Additionally, there is some optimism about earnings today, and the direction of the global economic recovery. This sort of optimism precludes the need for the dollar as a safe haven.
Developments in Japan have had little effect on the U.S. dollar. Japan makes its moves to weaken the yen against the greenback, but so far efforts at quantitative easing in Japan have failed to produce the desired results of yen weakness.
The next big market mover for the U.S. dollar in forex trading is likely to be next week's Fed announcement. More quantitative easing is expected, but there is uncertainty about how big the Fed's efforts will be.

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