Appetite for risk is helping to drive the U.S. Dollar lower ahead of the New York trading session. Firm trading action overnight in the global equity markets drove up demand for higher risk currencies leading to this morning’s call for a higher opening.
There seems to be a shift in market sentiment taking place that is centering on the Euro. With Bernanke supporting the actions by the European Union and the EU continuing to develop measures to support the Euro and back the struggling nations, watch for the start of a short-covering rally. A rally in the Euro should take some of the pressure off the commodity-linked currencies which have been beaten up lately because of trader aversion to risk.
For more: Shift in Risk Sentiment Could Drive Euro to 1.2153 - ForexHound.com the Forex Trading Portal
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