On Wednesday, after a long time period the Dollar started rising against major currencies in the forex market but at a much slower pace against the major currencies; soon after the Central Bank of China released that they will move towards a flexible monetary policy to the economic recovery, this will reduce market uncertainties about economic growth.
The Japanese Currency also fell broadly in the most recent trading session of the Forex market after the Vice Governor of China’s Central Bank gave the statement that market tools will be used to control credit growth in place of quote style.
But the US dollar held strong against the European currency near a two week high as investor’s book profits on the Dollar’s recent rally against Euro. On Wednesday EUR/USD continued its bearish trend and made a small top of 1.4194, then dropped down and hit bottom of 1.4007, after that the pair was closed at 1.4048.
Our current preferable short term scenario is the continuation of the downward trend. I have been observing this pair for many days and found that the US Dollar might continue its bullish run against Euro in future but I am uncertain that it can also continue the Bull Run against all major currencies of forex market. Though Euro jumped against Yen 0.2% and US dollar also jumped 0.2% against Yen.
The U.S. Dollar is in retreat against Euro and the pace of its bull run has dropped. The Dollar has trimmed its pace of growth against major currencies of forex market still it is consolidating for time being not falling whereas some small jumps is seen against Yen and Euro currencies.
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