Archive for the ‘usd’ Category

The yen surged to 15-year low on Friday against the dollar as fading confidence for the global economy have risen demand for the Japanese currency.

Will Bank of Japan intervene?

The latest move raised currency speculation of the Japanese central bank intervening in the forex market, which is rather uncommon (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..

The Canadian Dollar is advancing against it’s major trading partners, in particular USD.

For the first time since April (2010), CAD is heading towards 1.0 in exchange rate with the USD. Rising commodity prices and any unexpected rise in unemployment or inflation can easily make the Canadian Dollar stronger then the American dollar.

So, when Do you think the Canadian dollar will be stronger then the American counterpart, if ever?

After a few days of discussions, many observers believe Tories and Liberal Democrats are forming a coalition government in United Kingdom. Currency analysts are now relieved that Gordon Brown seems to step down as Labours leader from September this year.

The new government are likely to cut borrowing sooner then a Labour government would and in general, it should do well for the economy and the british currency. Forex analysts already predict a hung parliment between conservatives and liberal democrats and they seem to like it – pound sterling rose by almost 1 % today. Interest rates (more…)

The pound sterling has been declining during most of this year, but maybe we are about to see a turning point now?

As you can see in the GBP minute graph, the Pound Sterling have been increasing against US Dollar before Easter holidays starts.

In the longer forex charts for GBP/USD, it looks like the GBP (more…)

Today we cover two interesting currencies which seen increased volume in the last 6 months – Australian dollar against the U.S. Dollar. Here is a brief currency forecast from a technical analyst point of view.

AUD/USD – Short-term

Over the next 48 hours, make sure to keep track of the following resistance and support levels:
-Resistance to AUD/USD: 0.9190-06, 0.9228, 0.9276-90 and 0.9404
-Support for AUD/USD: 0.9136, 0.9118, 0.9050-75 and 0.8997

Although there is support for the currency pair around 0.9118, the possibility for a break through the resistance at 0.9228 remains. In the short term, most of the leading forex analysts believe in a bullish move, ie. Australian to U.S. dollars strengthened against the USD.

AUD / USD – medium term

We have seen a (more…)

The Dollar ended the week with monthly records against its major six rivals, indicating a broad strenght of the US currency.

Major investors and forex analysts expect that recent stronger economic data will prompt FED to higher interest rates sooner the earlier expected.

Stronger data supports the US dollar

The recent series of stronger data are shifting to support the dollar. “At least from an interest-rates perspective,” said Mike Moran, senior forex strategist at Standard Chartered Bank in New York. (more…)