Today’s sample of Forex Analysis from ForexHound.com

The U.S. Dollar fell sharply on Monday as bullish traders pared positions on the thought that the U.S. economy will not be able to keep pace with the global recovery. Before the Forex markets opened, China solidified itself as the driving force behind the global economic recovery when it reported more upbeat export news.

The Greenback traded sharply lower as China reported a 17.7% increase in exports and a 55.9% increase in imports. The surge in exports was the first rise in 14 months. Pre-report guesses were for only a 4% increase. Due to the timing of the report, and its extreme bullishness, the Australian and New Zealand Dollars both had rare gap openings Sunday night.

Dollar bulls were still reeling from the soft U.S. Non-Farm Payrolls report on Friday. Traders had been looking for the report to show that job losses had remained flat or perhaps that new jobs had been created during December. Instead the government reported that 85,000 new jobs were lost.

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