Daily Forex Comentary for July 7, 2009

July 7, 2009

Will Central Banks Diversify Away from the Dollar?

The U.S. Dollar traded substantially higher as trader appetite for risk diminished amid news that the global economy would recover at a much slower pace than previously estimated. Furthermore, news that China, Russia and India are prepared to introduce a proposal to the G-8 that calls for a central bank reduction of Dollars kept in foreign currency reserve.

The GBP USD declined hard on Monday on rumors the Bank of England would increase its quantitative easing program to $40 billion. …
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