This week’s online Forex trading news has been highlighted primarily by the fiscal conditions currently underpinning the Eurozone, with a moderate consideration regarding investors’ stances on the US dollar.
While the primary concern is the United States government’s approach to the looming deficit cliff, the Federal Reserve seems to have made progress towards the latter part of the week which will help bridge the gap between the democrats and republicans. However, in Europe near term worries continue to daunt any real gains in the value of the Euro. (more…)
One cause of uncertainty hanging over the Forex markets has finally been resolved in the last few hours. The US electorate have now decided who will be in charge of the world’s largest economy for the next four years.
The dollar was gaining ground against the Euro and Sterling in the run up to polling, but saw a small retrace this morning on market expectations of further rounds of quantitative easing.
US businesses and investors are turning their attention more towards the looming ‘fiscal cliff’ and its potential impact on federal deficits and debt. The major credit ratings agencies are maintaining a negative outlook on US debt due to this, with the dollar’s ‘reserve currency’ status being one of the few planks still supporting its elevated rating. If no settlement is forthcoming, the US economy could be shocked into further recession, putting more pressure on the dollar. (more…)
The big story hanging over Forex traders and anyone else with an interest in the economic future should see its final resolution in the coming few hours. Who will be in charge of the world’s largest economy?
The markets wait with baited breath for the decision of the US electorate, and the impact on the US dollar is opaque, although it did gain ground against the Euro and Sterling in the run up to polling day. (more…)
Euro rises to a 4-month high against the Dollar as the German Constitutional Court Approves of a multi-billion Euro Rescue Plan
The German constitutional court on 12 September, 2012 approved of the German government’s participation in the Euro zone’s latest rescue plan, pushing the Euro to a 4-month high against the dollar and other currencies. The Court allowed the government to contribute as much as €190 billion Euro to the rescue plan without having to take permission from the German parliament. These terms buoyed the sentiments in the forex market, which was expecting tougher terms from the Court.
German court verdict supporting EURO raise
Within hours of the Courts verdict, the Euro rose 0.35% against the US dollar to close at 1.2899. It continued to rise on 13th September, when it closed at 1.2985. (more…)
In the latest forex news, the US dollar has slid considerably in comparison to other major currencies.
While earlier this month many forecasts were bullish regarding the dollar’s upward trend, analysts have now scaled off this position and are taking a more contemplative approach.
Indeed, the dollar may slide further as is possibly indicated by the relative strength index (RSI) which appears to be setting the stage for a downward trend in the weeks to come. This is especially relevant considering that the Jackson Hole Economic Symposium is on schedule for the following week.
Although the bearish stance for the dollar may continue temporarily, should chairman Bernanke not hint at another round of QE3, sentiments may begin to reverse. (more…)
Morgan Stanley’s Martine Bond has left her position as Chief Operating Officer of Foreign Exchange and Emerging Markets in favour of a new, as yet unnamed, role within State Street Corporation.
It’s understood that she has been placed on ‘gardening leave’ from her position at Morgan Stanley with immediate effect. Ms Bond made the transition from JP Morgan to Morgan Stanley in 2009, originally working as Global Head of FX Prime Brokerage before being promoted to the COO role managing Forex in March of 2011. (more…)
Dominating Forex trading news is the Euro’s continued decline versus the dollar. The new low of 1.229 has hit many traders and this trend is predicted to continue for some time. The faltering of the Euro is seen to have been partially caused by fresh Greek unemployment figures, this data now showing that the number of jobless youths in Greece has hit a record high. (more…)
In recent Forex trading news, it is clear that all eyes continue to be on the economies of both Spain and Italy. Although the ECB’s intervention into the Spanish sovereign debt crisis initially raised investor sentiment, a subsequent backslide occurred, causing Spanish bond rates to hover near the dangerously high level of 7 percent. If we combine this factor with Spain’s request to be given more time to reach its deficit targets in exchange for further domestic austerity measures, (more…)
Recent Forex trading news highlights the continued fragile state of both the European and United States economies. Nonetheless, the US dollar varied in narrow ranges as liquidity tightens ahead of the July 4th bank holiday in America.
Eurozone PMI
Across the Atlantic in Europe, many online traders are eager to hear what the ECB and the Bank of England will state in their monthly policy announcements. Most traders foresee additional easing on (more…)
The German Unemployment Report is expected to support the bleak outlook for the Eurozone as unemployment in the area’s largest economy is forecasted to increase in June. Undoubtedly, the forecast for the Eurozone is not a rosy one, especially considering Greece is expecting a 9% contraction of their (more…)
Greece’s recent general elections had much of the world holding their breaths as the fear that an anti-Eurozone party would come out victorious. The doomsday scenario many feared was that Greece would revert to the drachma and cancel its bailouts, leading to massive losses for the Eurozone as well as the potential for an even greater disaster, with Spain and Italy teetering on the edge. Fearing excessive volatility on the markets some online Forex trading brokers even shut down private trading on Sunday, the 17th of June.
While the “end of the Eurozone” scenario did not come to pass as the pro-Eurozone (more…)
The recent financial turmoil for the Euro continues. Despite extensive funding programs from the European Central Bank, which was presented on March 1st, the EUR currency fell further against both the Japanese Yen (JPY) and the American Dollar (USD).
A lot of efforts
The efforts to curb the crisis in the Euro-area is (more…)
The BBC reporters are speechless when interviewing this Trader and he says exactly what is on his mind:
“The Collapse Is Coming…And Goldman Rules The World”.
Are you following the what the trader says, taking advantage of the possible Euro and stock market crashes, and see this an opportunity to invest in the more stable currencies or are you waiting for this to go away?
After losing ground for 13 months in a row, USD is about to break out and gain momentum against both euro (EUR) and sterling pound (GBP), according to technical analysts.
Why is USD gaining ground?
Many European countries economy is weak, with Portugal getting downgraded by Moody’s and Greece are having big problems paying their debt. Italian stock market fell almost 9 % previous week over yield spread concerns.
In fear of rising inflation, ECB increased the interest rates last week, without any positive effect on the exchange rates.
Both USA and British economies remains week, but not as bad as the Eurozone.
What do you think about EUR, GBP and USD? Will USD gain significant against sterling and the single currency?
IMF recently told the press they fail to see any underlying fundamental factors giving the Yen any strength. According to International Monetary Fund, the current value of the Yen reflects long-term fundamentals. So basically, they mean that the Yen is still overvalued against USD and rest of the G7 countries.
Surprising G7 intervention against Yen
Last week, seven central banks from the G7 countries joined together in an effort to weaken the Yen. After the earthquake, the Japanese Yen has been traded stronger, in contrast to what you would expect.
Currency traders also claim that the Yen strengths is partly due to corporations, insurance firms and private people sending money back to Japan.
What do investors buy in Japan right now?
It seems like Japanese investors mainly focus on the (more…)
As we previously predicted it became inevitable for Bank of Japan (BOJ) to hold back its plans for intervention. JPY/USD went from 83 yen per dollar to 85.47 shortly after the intervention.
Strong yen – harmful for Japanese economy says Noda
Early this morning (9:30 ET) Yen reached a new 15-year high. This time, Bank of Japan was quick to intervene in the currency markets, selling yen in exchange for us dollars, after a week of possible intervention warnings. This intervention was made to counter the adverse impact of the strong yen, and was the first official intervention in the currency market since 2004.
“We conducted the intervention in order to avoid excessive movement in the currency market. The Bank of Japan will continue to (more…)
The outlook for US Dollar have been going down, down and down against the Yen. Is it time for a turn-around soon?
New Economic Slowdown?
After the latest key U.S economic data was released, investors was first seriously concerned about the US economy showing, when July showed 27 % slowdown of previously owned U.S homes. But later, many forex investors insted became worried about the world economy instead and dollar started to rise again against many major currencies.
At the same time, Nikkei 225 rose to a 15-month low, while the Japanese currency become even stronger – 84 yen per USD. Yen is currently at its strongest value against USD this decade. Lets see how things move forward in the end of the week.
RBA, The Reserve Bank of Australia, decided on Tuesday to keep the interest rates unchanged for the third month in a row. We continue to see strong numbers for Australian employment and growth, and expect AUD to continue being strong against the USD with many carry traders moving to the pair (USD/AUD).
Strong growth among Australia’s trading partners
Economic data for the June quarter indicate strong growth, around 6 %, for Australia’s major trading partners. China, Japan and Korea had a stronger growth than expected, while the US economy grows less than expected.
Economic conditions in Australia
First, the Australian labour market has continued to show more jobs, while employment increased by over 46 000 jobs in June, growing 3.25 % since (more…)
After reaching 6 month high last week, pound sterling is now falling to it’s lowest lever in more than a week. Reason: Data signals Britain is not recovering as quick as expected.
Housing market slows down
The first decline in property prices appeared in July, showing a slower sales growth then previous months. Sterling fell to $1.5740 in London afternoon trading hours.
Analysts such as John Hydeskov, Danske Bank, believe Sterling is overbought and should have a correction. He suggest buying Norwegian krone instead..
This week’s online Forex trading news has been highlighted primarily by the fiscal conditions currently underpinning the Eurozone, with a moderate consideration regarding investors’ stances on the US dollar. 
