Forex Market Technical and Fundamental Recap
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Today's Forex Analysis summary.
The primary theme in the Forex markets on Wednesday was increased appetite for risk as investors punished the U.S. Dollar following the release of a government report showing the U.S. economy had contracted more than expected during the first quarter.
On Wednesday, the Euro surged to the upside and actually changed the trend to up on the trade through 1.3300. News that the U.S. economy has room to grow was the primary driver of the EUR USD most of the day. The perception is the world will begin to pull out of the recession once the U.S. economy gets back on track.
The GBP USD was strong on Wednesday as trader appetite for higher risk assets increased. News that the U.S. economy had room to grow and the Fed’s mild FOMC statement helped support the rally.
The USD JPY posted a strong gain on Wednesday as news of a possible economic recovery in the U.S. encouraged traders to sell the lower-yielding Yen.
The USD CAD fell sharply lower after commodity prices recovered and equity markets rallied sharply higher. The Canadian Dollar was helped by a rally in the crude oil market triggered by the possibility of an economic recovery in the U.S.
The AUD USD posted a strong gain on Wednesday and closed in a position to take out the recent swing top at .7326. A move through this level would reaffirm the uptrend
The NZD USD posted strong gains early in the U.S. trading session on increased demand for risky assets, but the market quickly weakened after the release of the FOMC information as traders decided to turn their focus on the New Zealand economy.
By ForexHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis
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