Forex Daily Analysis – December 10th 2008

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The US dollar continues to weaken, amidst a growing notion that not every financial sector will be bailed out by the Federal Reserve, or the American government. This notion fueled a fear of a wave of bankruptcies.

Yesterday’s Consumer sentiment data from the USA was much lower than last month’s figure. A drop in consuming also hurt the American currency.

Bad data in Britain, didn’t hurt the pound. The cable gained ground, despite the deep recession, probably due to the dollar’s weakness.

In Canada, interest rates were lowered to a 50 year low – down 0.75% from 2.25% to 1.5%. This was a quarter of a percent sharper than expected. This big drop could indicate that the Canadian interest rate could go as low as 0%, a similar fate like its big southern neighbor.

And in Switzerland, today’s ZEW consumer sentiment data is anxiuosly expected, although it has a weaker impact than yesterday’s German ZEW data on the Euro. Dollar traders are looking into the Wholesale Inventories data.

All in all, today is a rather calm day. Tomorrow seems much more interesting…

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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