Canadian Dollar Posts Another Monthly Decline in FX Trading

November 28, 2008

Forex trading with the loonieThe Canadian dollar is posting another monthly decline in FX trading on the currency market as commodities continue to struggle. In forex trading, the loonie has been struggling to maintain parity with the U.S. dollar, and then fallen woefully short.

There is some hope that the current rebound in global equities will pre-sage a rebound in commodities, helping the Canadian dollar in FX trading. However, even should that happen, there is a long way to go for the loonie to catch up with the greenback again.

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U.K. Pound Forex Trading Forecast

November 28, 2008

Sterling gains against dollar in currency tradingThe U.K. pound forex trading forecast, for the first time in a long time, is looking somewhat positive. Even though the U.S. dollar is advancing against the euro in forex trading, it has been pulling back against the sterling.

In currency trading, the pound is showing some life, thanks to a boost in the equity markets. The U.K. pound forex trading forecast is now showing signs of a possible rally, as well as hope that economic troubles may be starting to slow.

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U.S. Dollar Retains Support in Currency Trading

November 28, 2008

Greenback holds out agains the euro in forex tradingThe U.S. dollar is retaining its support in currency trading on the FX market this morning, thanks to pledges by the government to continue on the bailout track. Fed policy is not having much of an impact on the greenback in forex trading, even though normally announcements such as interest rate cuts would have a negative effect on the currency.

However, since there is a consensus that something needs to be done, all of these steps to stimulate the economy are being viewed as positive. Traders see that the U.S. government now — and especially under president-elect Barack Obama — is willing to do whatever it takes to keep the economy from complete collapse.

And that is what is helping the U.S. dollar most in currency trading on the FX market.

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Euro Falls in Forex Trading

November 28, 2008

Euro zone stimulus announcement can’t save euroThe euro zone stimulus package does not appear to be helping much right now in terms of the euro in forex trading. The U.S. dollar continues to gains strength against the 15-nation currency in trading due to the following factors:

  • Deflation
  • Unemployment rate
  • Recession
  • German Ifo

As a result, the ECB is likely to cut interest rates in order to help stimulate the economy, and that probably won’t help the euro much right now in forex trading, either.

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Thanksgiving Trading Pattern

November 28, 2008

Holiday levity for the end of the weekHere is a fun Thanksgiving trading pattern. A little more fun for the end of the week.

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11/30/2008 – Markets are given a reprieve, for now

November 28, 2008

* Markets are given a reprieve, for now
* Central Bank rate decisions: RBA, RBNZ, BOE, and ECB

Financial markets were thrown a lifeline when the Fed stepped in to guarantee troubled assets of a major US bank and initiated yet another lending facility to stimulate business and consumer lending. Promises of additional fiscal stimulus from the incoming Obama administration added further fuel to the rally, and global stock markets rebounded in major fashion, erasing the devastating losses of the prior week. Risk appetites recovered in tandem and this saw the USD sold off and the JPY-crosses rally strongly. By the end of the week stocks had maintained their gains, but the JPY-crosses had surrendered nearly all of the gains for the week, leaving the outlook for risk appetites highly uncertain. It seems that without recurring government initiatives, markets are unable to sustain rallies, which is to be expected given the unfolding global recession. Adding to the confused sentiment, Friday’s strong recovery in the USD was driven by month-end USD fixing demand from asset managers as well as increases in inter-bank lending rates, which saw USD LIBOR rise above the Fed’s target rate for the first time in a month. While most likely due to month-end distortions, the USD recovery and the deterioration in credit market conditions suggests we still have a long way to go before sentiment is stabilized.  Full text »

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Asia Session – November 28, 2008 12:44 AM

November 28, 2008

And the Asian week ends with a whimper as most FX pairs trade in small ranges to conclude the US holiday shortened week. As mentioned yesterday, now that the holiday in the US and the terrorist attacks in Mumbai are yesterday’s news, the markets will now set their sights on the coming ECB, BoE and FOMC meetings in early December. As many assumed that the US key rate would be lowered from its current 1% at the December meeting on December 15th and 16th, the Dollar lost some footing against both the Yen and the Euro. Against the Euro, the Dollar lost strength from 1.2879 and made a nice quiet move to dollar lows of 1.2915 in what was a trading session reminiscent of days of yesteryear. USD/JPY fell from early highs of 95.58 to hit a session low of 95.15 before getting corralled into a range at 95.25ish levels. Other currency pairs just traded sideways for the week end, including GBP/USD and AUD/USD.  EUR/JPY moved a bit between 122.65 and 123.31 but ultimately ended up closing the session where it opened. With the US stock market closed earlier, their was not much fuel for the movement of the Yen crosses. Full text »

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Asia Session – November 27, 2008 1:43 AM

November 27, 2008

The US Dollar lost its footing in Asia in thin, choppy trading ahead of the US Thanksgiving holiday as investors wondered if the Buck could keep its strength in the near term amid talk that the US Fed will once again lower interest rates to help curtail a recession. EUR/USD continued to inch higher from its NY lows of 1.2818 to cap out at 1.2937 in Asia as funds continued to demand US Dollars amid a flurry of end of year investor redemptions. The same story stood true for USD/JPY as a NY high of 95.94 was systematically erased as the Asia session progressed and a dip below 95.00 was tallied. Many market moves in the FX market were profound due to poor liquidity due to the US holiday. US markets are closed for the Thanksgiving holiday tomorrow and Friday they close at 1pm (EST) in a shortened day. Full text »

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New York Session – November 26, 2008 11:35 PM

November 27, 2008

Despite all the bad data out of Wall St. today, including poor numbers in durable goods, Chicago PMI and new home sales, we saw US stocks close in the green and the US Dollar surge verse the Euro and Yen. With US markets closed tomorrow and only a half session (until 1pm) on Friday, they had quite a bit to digest today between the terror attacks on civilians in Mumbai, bad data results, surprise rate cuts by Poland, (25bp) and China, (108bp), and lastly President-elect Obama talking about the credit markets, and putting ex Fed chairman Paul Volcker as head of the new White House economic advisory board. Full text »

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Happy Thanksgiving from GFT Forex!

November 26, 2008

Wishing you a Happy ThanksgivingGFT Forex would like to wish you a

Happy Thanksgiving!

May you find much to be thankful for this year, and in the years to come.

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