Trade
Follow Us

Resources

US Dollar Appreciates Against Euro on Dow Jones Tumbles

By David Rodriguez, Quantitative Strategist
25 January 2008 20:52 GMT

A virtually empty US economic calendar left the dollar to the whim of broader financial market forces, and little stood in the way of a Dow-led greenback rally. Such risk aversion likewise led to substantial drops in domestic Treasury yields and similar moves in short-term interest rate expectations. Yet markets seem impervious to developments in domestic bond yields. The dollar’s resilience in the face of sharp Treasury yield drops represents a clear break from more normal market conditions. That said, it remains relatively clear that risk sentiment will be the main driver of dollar price action through the coming months of forex trade.   

Where is the Dow headed? Where is the Dollar headed? Share your opinion with fellow currency traders on the DailyFX Forex Forum EUR/USD Discussion. 

Written by David Rodríguez, Currency Analyst for DailyFX.com,

Tell us what you think about this article;  e-mail drodriguez@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

25 January 2008 20:52 GMT