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Forex: GBP/USD drops as risk aversion returns

Thu, Nov 26 2009, 23:54 GMT
http://www.fxstreet.com

FXstreet.com (Sydney) – The pound lost ground against the dollar and is trading at 1.6514. The pair is operating within a narrow range around 1.6509/14 and is considered slightly bullish. The pair finds support at 1.6441 and resistance is at 1.6561.

The pound was put under pressure after news coming out of Dubai signalled the return of risk aversion. Overnight, the Dubai government announced that it would seek an extension to repay maturing debts in December. This gave rise to fears that the Dubai government might default on massives debts.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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