Daily Forex Commentary for May 22, 2009

May 22, 2009

Financial Conditions Beginning to Strip Dollar of Safe Haven Status

Forex traders punished the U.S. Dollar on Thursday following the Fed’s inability to complete its announced purchase of government assets. This action reversed the trend of the day which showed a strengthening Dollar after the S&P Corp. announced it had turned negative on the U.K. economy because of the size of its debt to GDP ratio.

By the end of the trading session, Dollar traders turned even more bearish as rumors circulated that U.S. debt was next in …
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