Archive for February, 2010

US Dollar overview

The US Dollar concluded the week right about where it started, puzzling traders with unstable temporary actions keeping its form almost unaffected. Likewise uneven price move in the S&P 500 underlined financial markets’ indecisiveness and gave little signs on upcoming short-term course. Apparently, financial markets have come to the point of a deadlock. On the contrary, many consecutive months of stock market progresses leave additional medium-term drive to the topside. On the other, the S&P 500 and other major indices stay in a clear bear market and risk more losses after a quite long period of appreciation.

US Dollar widens its run

Taking into consideration that the unusual rally the dollar could gather this recent week, and the momentum it has included to the currency’s striking bull tendency; it looks unsuitable to begin estimating on when this drive is going to pause. But it is essential at all times to examine the life span of a trend. If not, it’s going to be very difficult to know when to take profit. The main basic force behind the dollar’s existing run is a deep source of momentum. The reverse of risk flows in the financial markets will be able to proceed for a while and involve considerable shifts in underlying capital. During 2009, investors were expecting to reinvest their provisional capital that had been idled by the most awful financial crisis in history.