Excerpt from: Spot Forex
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| February 26, 2010 | | Spread betting and contracts for differences on the U.S. dollar | Spread bets and CFDs on the spot forex market should consider that the U.S. dollar is weakening against most other currencies today. The U.S. dollar index is lower as risk appetite makes an appearance, reducing the need for the greenback as a safe haven investment.
Helping the U.S. dollar move lower is the fact that commodities are rising. The greenback often moves inversely in spot forex trading to the performances of commodities -- especially gold and oil. With risk appetite returning (at least for now), it is little surprise that there is downward pressure on the U.S. dollar, especially from the euro in forex trading.
The sterling is the only major currency still losing ground to the greenback. Indeed, even positive U.K. GDP data cannot overcome continued fears about sovereign debt and the British economy that have been keeping sterling lower in spot forex trading.
| Topic Tags: CFDs, commodities, contracts for differences, euro forex trading, spot forex market, spot forex trading, spread bets, spread betting, U.S. dollar | |
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