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 Forex Analysis
24

Will the U.S. Dollar Rally Be Short-Lived?


It has been a roller coaster ride in the foreign exchange market that was filled with sharp intraday reversals. The dollar ended the U.S. trading session higher against the Euro and Swiss Franc but virtually unchanged against the other major currencies. Yet the lack day to day change in the value of the GBP/USD and USD/JPY masked wild fluctuations intraday. The dollar had sold off aggressively ahead of the U.S. durable goods report but then lost its footing during the rest of the session. Although the Federal Reserve’s interest rate decision was suppose to be the day’s most important event risk, the ECB refinancing operation and the intervention by the Swiss National Bank also had a lasting impact on the currency market. EUR/CHF and USD/CHF are among the best performing currency pairs and largest percentage movers.

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