It seems that the new year has once again brought the bears out in regards to the latest online forex trading sentiment. The Euro has lost any previous gains made against the dollar due to a larger fall in European Union industrial output than previously predicted.
This statistical pullback is highlighted by the continued record-high unemployment in countries such as Spain and Greece. Although unemployment remains one of the most bearish economic barometers for the Euro, weak private sector output serves to further illustrate the fragile state of this multinational economy. (more…)
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…)
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…)
The week ahead looks to highlight concerns underpinning the European sovereign debt situation. The main story still is that of volatility on the European market; the single currency’s future viability questioned by many traders worldwide.
Spain is becoming more and more of a concern
The concerns with Spain’s ability to manage a flailing economy have grown since the IMF rescue package was approved. Spanish yields have tipped well over seven percent, trading at 7.39% after hitting a European-era high of 7.56%. Attempting to mitigate further volatility, Spain has banned short selling for three months while Italy, feeling the effects as well has banned short selling financials for one week. There are now fears that Spain may indeed seek a full bailout, as regional governments have begun to express concern for their ability to manage internal debts. Spanish and Italian bank shares were the worst hit followed closely by their domestic indices; the Ibex at one point dropping nearly five percent.
Greece’s debt reduction
Furthermore, creditors are expected to begin auditing Greece’s progress on debt reduction. This audit determines whether the country is to be approved for an additional 31.5 billion euros. With political and social unease, a quickly shrinking economy and many investors questioning whether Greece will meet its August deadline, there has been speculation of true insolvency should their financial situation worsen.
EUR/USD at two-year low
Because of these protracted jitters, the euro has fallen to a two-year low against the US dollar to trade at $1.2082. Furthermore, it has fallen to an eleven-year low to the Japanese yen. Below $1.20, many online Forex traders have taken a bearish stance.
Euros long term survival
On the other hand, some Forex traders have taken the attitude that any position would have to be long due to such market volatility. This, of course, is under the assumption that the euro will remain in its current form. Indeed, the lack of real movement in the precious metals markets, traditional safe havens, illustrates that many believe the markets may incur still more losses in the near term. Nonetheless, taking a long position in the euro may indeed be one of the few hedges against what remains as the most volatile era for decades.
Disappointing Chinese trade data saw Asian stocks declining and the US Dollar and Japanese Yen gain ground as traders turned to these safe haven currencies. The Chinese report showed that imports grew by only 6.3 percent in June, compared to May’s figures of 12.7 percent and the 11 percent analysts had forecasted. This is disappointing and places a question mark on Asian growth as many of the economies in the area rely on China as their main source of demand.
Thus, overnight Forex tsraders saw the USD gain ground while the AUD (Australian Dollar) and NZD (New Zealand dollar) slipped. Clearly, many online traders opted to mitigate risk and buy up the greenback and Yen. (more…)
This past week has seen a number of financially important events; from Greek election results to Spanish bonds surpassing all-time highs. Any signals of enthusiasm regarding Greece’s elections quickly faded and the overall value of the Euro has continued on a downward trend. The forex bears still seem firmly in place in both European and international market trading.
While the immediate threat of an imminent Greek default being averted initially caused a slight rally in European markets, a broader analysis revealed investors’ sentiment still remains shaky; (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?
Sterling Pound against US Dollar is now in an up-trend after bottoming at 1.4425. How long will it continue? Let us look at the latest currency graph for GBP/USD.
Current intraday support levels are at 1.5589 and 1.5710, while weekly resistance levels are at 1.6460 and 1.70. It’s no secret that many analysts expect Sterling to rise against the dollar. If the US economy continue to show poor statistics, we believe GBP will rise sooner rather then later.
What do you think about the latest strength for GBP? Will it continue or break down?
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?
A stronger demand then previous t-bill auctions, made the euro gain slightly against the main trading partners on Tuesday.
Government t-bill auction received $780 million euros
Today’s auction was attracting double as much capital as the last time. The treasure bills sold had a lenght of 26 weeks at a yield of 4.55 %. Greece also offered t-bills with a lenght of 52 weeks, with a yield of 4.85 %.
Euro rise against Dollar & Sterling Pound
It seems like euro forex traders were happy about the successful t-bill auction. During the afternoon, the Euro have risen considerable against several other currencies.
Against the Dollar (EUR/USD) from 1.3626 to 1.3573, and against the Pound Sterling (EUR/GBP) from 0.8808 to 0.8839.
Many European Investors believe the Euro crisis are about to spread to Spain and Portugal, after Greece took a hard hit in the beginning of the month. The Euro have taken a hard hit and lost over 6 % against the Euro the last weeks. Are Europe just in the beginning of the crisis, while US are on their way out?
Spain deny lost budget control
“We have control of the ship, we have a plan,” said María Teresa Fernández de la Vega, Spain’s deputy premier. Earlier the same day, the prime minister José Luis Rodríguez Zapatero, visited Washington
where he was confident about his home country: “Spain has a strong and solid financial system.”
Well, all are not as confident. Both Madrid and Lisbon ran up their budget deficits to dampen the effects of the economic crisis and partly because of (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…)
Forex Traders are worried Fridays release of the US unemployment rate was way worse then expected and now the US Dollar might face further decrease.
American Labor Department reported that the much higher unemployment rate could be due to lagging data. The non-farm payroll employment fell by 216 000 jobs in August, followed by a revised decrease of 276 000 jobs in July. The new numbers are indication that America is now facing a 9.7 % unemployment rate, the highest in 26 years. Financial analysts and currency traders did expect a 9.4 % unemployment rate in July.
Further pressure on US Dollar
However, it seems like the decrease have moderated the last months, even if some sectors still face continued job losses. Still, consumer confident might be lagging in the coming months. As a result of the unexpected numbers from USA, many online forex traders assume that the US Dollar will continue to suffer against the Euro and Yen.
The latest days of increased stock market indecies have weakened the US Dollar (USD) and strenghtened many of the smaller currencies, such as the Swedish Krona (SEK), British Pound (GBP) and the Franc (CHF). We do expect a falling stockmarket within short (1-2 weeks) and a falling risk aptite, (more…)
It seems that the new year has once again brought the bears out in regards to the latest online forex trading sentiment. The Euro has lost any previous gains made against the dollar due to a larger fall in European Union industrial output than previously predicted.
