By Dan Eduard – The U.S. dollar continued with its bearish trading throughout last week. The main reason for the dollar’s downfall was the disappointing Non-Farm Employment Change release. The report showed that there were 131,000 less employed people in the U.S. in July compared to June. This has shaken up investors’ confidence in a quick recovery for the U.S. economy.
Nevertheless, EUR/USD didn’t reach a 3-month high due to the negative employment data alone. The dollar has been falling against the euro consistently for the past 3 months, as investors suspect that the euro is still under valued. For those of you who caught this trend at its beginning, you stand now with a profit of over 1,200 pips. For those of you who didn’t, now might be your only chance to enjoy this solid trend, as a correction will eventually take place.
Today, there aren’t any news events that are expected to have a large impact on the market. This means that traders are advised to follow the equity markets in the U.S., euro-zone and Japan. Traders should also take under consideration that crude oil saw a relatively sharp slide on Friday, and thus a bullish correction might take place today, with the potential to reach the 82.00 level.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.