Forex Currency: Risk Appetite Rises; USD Under Pressure

[amandalanlulei]

Forex Currency---- Yesterday, due to the positive impact of the stock market, risk appetite rose, pushing up commodity currencies against the dollar in forex market. The euro closed at 1.2630; the pound closed at 1.5179. European shares closed with nearly 1% up. US stocks closed with nearly 3% up across the board, highest daily increase since May 27th. Forex investors were attracted to invest risk assets again, making the dollar and the yen, as secure assets, sold across the board.

Besides, on Wednesday forex market, concerns on European debt crisis receded, while fears against the second grounding of American economy rose sharply. Expectations for US rate hike fell. The dollar was losing its hedging function. Commodity currencies were thus pushed high.

Technically speaking, the USD index is hopeful to decline further, with top resistance at 84.20, and support at 83.50.----Forex Currency

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By Amanda