Dollar Gains as Fundamentals Spurs Risk Aversion

Dollar Gains as Fundamentals Spurs Risk Aversion

Dollar Gains as Fundamentals Spurs Risk Aversion

US DollarThe US dollar strengthened today as the signs of the weaker global economic growth caused investors seek safety of the US currency, while driving stocks, commodities and riskier assets down.

The downgrade of Spain’s credit rating, the lower imports in China and other fundamental economic data makes traders to worry about sustainability of the global economic recovery. The news from the US weren’t good either. The US trade balance deficit expanded to $46.3 billion in January, more than was predicted. The deficit of the federal budget balance widened from $49.8 billion to $222.5 billion in February. The number of claims for unemployment benefits rose from 371,000 to 397,000 last week, compared to the predicted value of 375,000.

The Standard & Poor’s 500 Index fell as much as 1.8 percent to 1,296.76, while the Stoxx Europe 600 Index declined 1.2 percent to 277.88, the lowest closing level this year. The Dollar Index, tracking performance of the greenback versus its six major counterparts, gained 0.8 percent.

EUR/USD sank from 1.3908 to 1.3788 today as of 20:44 GMT. USD/JPY traded at 82.95 after it rose from 82.72 to 83.17. USD/CHF advanced from 0.9292 to 0.9363 and later traded at 0.9322.

If you want to comment on the US dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Category: Forex, US Dollar
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What is forex

What is forex

Forex or FX, English Foreign Exchange (Currency Exchange) is an abbreviation of the word is created. Forex, currencies of different countries with each other to modify the global foreign exchange market. Daily average trading volume of U.S. $ 3 trillion and the world’s largest and fastest growing financial market liquidity of the Forex than the sum of the world’s main stock exchanges.

Forex markets are used primarily as a platform for an exchange between currency units in this market, gold, silver, such as precious metals, oil, stock indices traded on different stock exchanges.

This market is a high leverage ratio allows for both high risk and high gain.

The participants of the Forex market, commercial banks, central banks, asset management firms, insurance companies, large corporations, international funds, and individual investors.

Orders are processed over the counter in the Forex market is a market there is a general center. However, in different parts of the world’s commercial centers are geographically. The most important of these centers in London, New York, Tokyo, Frankfurt, Singapore, Ceneva and Zurich, Paris and Hong Kong’tur. Operations; banks, corporations and individual investors made through the electronic network 24 hours a day 5 days can be done in this market. Forex investors of all sizes now have access to only one Internet connection at any time of day, a very active market.

The purpose of the web portal UzmanForex investors who are interested in forex markets and to inform prospective investors, to raise their level of consciousness, prospective investors about the risks of the market and would need to give realistic information available to investors to provide the tools.

Category: Forex
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