Forex Broker: Market Focus Transfers; USD May Fall Back

[amandalanlulei]

Forex Broker---- In the first half of this year, the dollar, benefited from hedging purchasing triggered by European sovereignty debt crisis, rallied for 9.57%, the highest ever since 2005. However, while the forex market shifts its focus onto the continuity of American economic recovery under European crisis, forex investors are looking for opportunities to cut long dollar. Accordingly, the dollar is stepping into downturn recently.

Forex traders are observing whether the 1 trillion rescue plan of EU would work, and whether US economy would get rid of outside affects and continue recovering. Thus forex traders have suspended buying the dollar. Forex analysts remark that forex “seesaw battle” might last weeks or even months. It is predicted the USD rally would fall the latter half of this year.

Chicago Mercantile Exchange (CME) statistics shows that until the week of June 22nd, USD net long position dropped 70% at 49,335 from the 163,085 high on June 8th.

As a matter of fact, the euro/ dollar has gradually rebounded since June 7th when the forex rate fell below 1.1877.
Meanwhile, US economic data released in recent days are mostly weak, which makes investors more worried about US economic recovery.

At 09:02 Beijing Time, the dollar index reported 85.24. Euro/ USD forex rate reported 1.2391/93.

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By Amanda