European Union Proposes Its Own Stimulus Package

Euro gains in forex tradingThe European Union is proposing its own stimulus package, with the European Commission calling on its 27 member states to help stymie the recession by spending around 6 billion (about 200 billion euro). The Street reports on the EU plan:

The news, along with speculation that monetary policy in the euro zone is likely to ease, is helping the euro gain in forex trading on the currency market.

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• Euro in Forex Trading
  Trading on the currency market

Currency Nicknames in Forex Trading

Common names for currenciesYesterday, we took a brief look at some of the currency pair nicknames that you are likely to come across when reading forex trading news. Here are some of the currency nicknames for individual currencies on the FX market:

• U.S. Dollar: Greenback
• Canadian dollar: Loonie
• New Zealand dollar: Kiwi
• Australian dollar: Aussie
• Euro: Fiber
• U.K. Pound: Sterling
• Swiss franc: Swissie

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• Forex Trading News and Information
  Currency trading on the FX market

Forex Trading Forecast: U.S. Dollar

Currency trading with the greenbackThe forex trading forecast for the U.S. dollar is deteriorating in the mid-term right now. A big part of the problem in currency trading with the greenback comes from yesterday’s announcement of a massive bailout plan for the U.S. economy.

Much of the fear with regard to the dollar in FX trading is coming from the fact that the government continues to expand its balance sheet, and that is causing many investors to wonder if so much debt will ultimately destabilize the U.S. economy — and the greenback along with it.

See Also

• U.S. Dollar in FX Trading
  Forex trading with world currencies

Japanese Yen Continues to Gain in Forex Trading

Yen appreciates as carry trade continues to unwindWith the global economy in its current state, risk appetite is on the low end. And, as the FX market shuns the risky carry trade, the Japanese yen will continue to gain in forex trading.

Indeed, there are many issues plaguing the global economy right now, and this means that low yielding currencies like the yen will appreciate. Bloomberg reports on the yen in currency trading:

See Also

• Japanese Yen in Forex Trading
  World currencies on the FX market

British Pound Continues its Descent in Currency Trading

Forex trading with sterlingThe British pound continues to fall further and further in currency trading on the FX market. Forex trading with the sterling is almost all shorting right now as the economy succumbs.

Investment in British assets has all but dried up, and consumer spending is the lowest its been in more than a decade. The British economy is in trouble, and every seems ready to accept that and invest in almost anything else.

The outlook for the pound in FX trading continues to be grim, and no one expects anything like a quick recovery.

See Also

• Forex Trading with the Sterling
  Currency trading on the FX market

London Session – November 26, 2008 7:43 AM

The London session was pretty lackluster as activity cools down ahead of the US Thanksgiving Day holiday.  EUR/USD was practically unchanged overall and was near the 1.2950/60 zone.  The 1.2900 area looks like important support as this was a price level that saw very good buying interest yesterday.  Below here should see losses accelerate.  JPY crosses were just modestly higher as USD/JPY rose about 40 points to 95.30/40 while EUR/JPY jumped 50 pips into the 123.50/60 zone. Full text »

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Asia Session – November 26, 2008 1:42 AM

Although news of the Federal Reserve’s 0 Billion plan to unfreeze credit markets caused initial elation in the Yen crosses in NY trading, quite the opposite occurred in Asia as investors feared that despite the move, a global recession was inevitable. The EUR/JPY provided a fine example, as it peaked at 125.86 in NY trading and briefly flirted with 122.99 in Asia as the Yen was bough on risk aversion as the Nikkei was back in the red. The other Yen crosses followed the same path, with GBP/JPY dropping from NY highs of 148.61 to Asia lows of 145.42, AUD/JPY falling from 63.68 to 61.14, and NZD/JPY sliding from early NY highs of 53.76 to 51.60 lows. The Yen saw some strong bids versus the Dollar in Asia, going from 95.55 to 94.80 in a pretty swift move. Many see the Yen maintaining its strength as global worries continue and further BoJ rate cuts are put off . Full text »

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New York Session – November 25, 2008 4:19 PM

The flight to risk witnessed overnight held up in the NY session as the pre-open gains on the news of yet another government bailout (to the tune of 0 billion) held up.  Stocks ended the day up modestly on the back of two days of stellar gains.  In an encouraging sign, the S&P 500 managed to close above the critical 850 support level.  The rally in stocks was despite a move higher in bonds as well, on the back of some strong auctions that suggest demand for US paper remains firm.  The 10-year yield was 24 bps lower (price higher) while the 2-year saw a more modest decline of about 6 bps. Full text »

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Currency Pair Nicknames in Forex Trading

Learn FX trading termsWhen you are reading forex trading news, sometimes you might come across odd-sounding nicknames for currency pairs. It is true that currencies have their own nicknames, but pairs have nicknames as well:

• GBP/USD: Cable
• GBP/JPY: Gopher
• EUR/USD: Chunnel
• EUR/JPY: Yuppy (or Euppy)
• USD/JPY: Ninja

See Also

• FX Trading Terms and More
  Learn forex trading

Risk Aversion Boosts Yen in FX Trading

Japanese yen in currency tradingRisk aversion is back (again) on the currency market. This is providing a boost for the yen in FX trading, as carry trades unwind and as investors look to "safer" assets.

Despite the stock market rallies on Friday and yesterday, fears about a U.S. recession and a global recession remain firmly in place. This means that profits will be taken regularly when they are made, and that volatility will continue to prompt safe haven investing.

In such a climate, the Japanese yen usually does well in currency trading. And this is no exception.

See Also

• Japanese Yen in FX Trading
  Currency trading on the FX market

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