US Dollars Gain Value With Dubai Debts Issue

With the announcement by Dubai World seeking to suspend their repayment of debts. It has causes investors to stay away from risky investment and causes the greenback to gain value against other major currencies.

With the release of the news, the US dollar rises against EURO to the value 1.498 causing the retesting of the support at 1.50586 to be unsuccessful.

Due to the investors selling off their stocks and moving to the dollar, it may continue to push the greenback up. In addition to the fundamental news, there is also a MACD negative divergence on the EUR/USD pair. Since the technical analysis also indicates the possible increase in the dollar against euro, you can go for SHORT in the trading of EURUSD.

However the rise in dollar may be temporary with the Fed continuing to hold the interest rate to near 0. This is a factor that is weighing on the dollar causing the recent decrease in dollars.

As the gold is also raising high for the past few months, this may cause the investor to eventually move to gold causing the fall of the greenback in future.

I seldom share any news in my blog but I find this news pretty interesting and may affect some of you who are trading the dollars. In future, I will continue to post some of the news that I have read that may be of interest to you.

Here is the website that I have read the news and hope you find this post useful to you.

No related posts.