Today’s sample of Forex Analysis from ForexHound.com

It looks as if U.S. Dollar bears have a decision to make after the Fed Minutes painted a gloomy picture of the economy. Either the Dollar will decline because of the Fed’s outlook or the Dollar will rally because of renewed risk aversion.

For the past few weeks, worse-than-expected U.S. economic reports have driven investors out of the Dollar and into foreign currencies but this trend may becoming to an end as traders assess the Fed’s new outlook for the economy.

Late Wednesday the Dollar began a small comeback following the release of the June Federal Open Market Committee Minutes. In the report, Fed officials issued an updated economic forecast calling for a downward revision of the Gross Domestic Product. In April, the Fed pegged the GDP growth rate at 3.2 percent to 3.7 percent. Today’s report showed a downward revision of GDP to 3 percent to 3.5 percent.

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