Global implications affecting the US dollar
Last month forecast show the dollar index is in the support zone between 79.50and 80.50. The index shows the performance of dollars against other different currencies. The falling of dollar has shown the fall of many currencies like euro, pounds, AND YEN. The prices are at a low risk area as the index hitting support of dollar.
The global markets are thus affected by the movement of the Dollar. The increased aversion can be seen as the dollar rises slowly and steadily. The increased aversion haws a negative impacts over the stock markets which is a warning for stock traders. The commodity prices may also be a bearish due to the rising dollar say experts.
The play can see the potential rise of dollar if the index does not come down below 79.50. The close will be sure if the level becomes less and make dollar level lower. The area of 80 is important for the index of the base during the month of May2010.
