US Dollar Strength Calms on Risk Appetite Reversal?

By Luke in Currency Articles | December 2, 2010 18:23 | Tags: , , , , ,

The US Dollar remains strong yet the march downards has halted today on both cable and EUR/USD. Yesterday most positions were heavily weighted net short, yet now it seems that the order book is more mixed as traders appreciate renewed risk appetite and the subsequent stock market gains.

The S&P 500 has rallied another 1% today with gains totaling 3.5% in the last 48hrs. The FTSE has aslo rallied another 2% bringing the total gain to 4% in the UK over the last two day period.

Today has seen a boost in the sales of existing homes as more Americans have signed contracts to buy previously owned homes in October. This has helped avert concern that the absence of support from the US government in this sector could be further de-stabilising the US housing market.

The fundamentals that are driving the 10% rise in home sales are record low borrowing costs and improved confidence in the US economy. The US stock market move was undoubtedly fuelled by this announcement.

Analysts now expect an improvement in the jobs situation in the US as consumer confidence picks up. Tomorrow sees a labour department report that is expected to show that 145,000 jobs have been addded to the markets.

Best Regards
Luke Zorab

Torfx Currency Dealer

“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.”


Comments are closed.

Currency Articles - Dec 2, 2015 11:35 - 0 Comments

GBP and EURO Still Weak as Monetary Policy Continues To Dominate

More In Currency Articles


Gold and Oil News - Nov 3, 2016 14:09 - 0 Comments

Gold Prices and Where Next At This Resistance?

More In Gold and Oil News


Shares and Markets - Sep 8, 2016 19:01 - 0 Comments

FTSE 100 and Dow Jones: Can They Head Higher This Year?

More In Shares and Markets