U.S. Dollar Gains Against the Canadian Dollar in Currency Trading

Loonie the only currency to fall to the greenback in forex tradingThe U.S. dollar is making gains against the Canadian dollar in currency trading on the FX market today. For the greenback in forex trading, this is a minor victory. The loonie is the only currency that the U.S. dollar is making a showing against on the FX market this morning.

The Canadian dollar is being hampered in currency trading by oil prices. After making some gains and moving back above a barrel, oil prices have fallen again as traders decide that violence in the Middle East is not enough to support oil prices above the a barrel mark.

Against other major currencies, though, the greenback is falling in forex trading.

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• U.S. Dollar in Currency Trading
  Forex trading on the currency market

China’s Currency Reserves Drop

Chinese foreign exchange reserves fallRight now, China has the largest currency reserves in the world. Yuan appreciation has encouraged speculators to invest in China, and that has helped matters along.

Now, though, the Chinese government is thinking about yuan depreciation, and is reluctant to let the yuan continue its course of appreciation. Bloomberg reports on what yuan depreciation is likely to do in terms of foreign exchange reserves:

It is important to note that individuals cannot trade the Chinese yuan (also called the renminbi) on the FX market. However, the movements of the yuan do affect other currencies on the FX market.

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• Trade World Currencies on the FX Market
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London Session – December 30, 2008 7:43 AM

Currency moves continued to impress in the London session despite the overall thin market activity in the holiday-shorted week.  The only big piece of data out across the pond was French housing starts and though it came in better than expected, the result was still a dismal -14.4% three-month run-rate in November on the heels of a -20.6% result the prior month.  Comments from the ECB’s Mersch helped keep euro supported though as he called the currency a “stabilizer and protector” in this time of financial crisis.  EUR/USD jumped about 80 points in the session and was trading near 1.4170/80 just ahead of the NY session.  The 1.4220/30 area looks like the next upside trigger while below 1.4130/20 could get ugly. Full text »

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Asia Session – December 30, 2008 1:18 AM

 
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New York Session – December 29, 2008 4:29 PM

The price action in the NY session was both surprising and welcomed in what was expected to be a relatively mild holiday trading environment.  The lack of economic data or events had traders squarely focused on technical breaks.  EUR/USD collapsed about -300 pips in NY trading as the move above 1.43 was proven unsustainable in this thin market.  The pair was sitting near the 1.3970 zone as the session came to a close.  The 1.3820 December 19 low now looks like the next critical support mark.  Below here a move to 1.35 could come in short order. Full text »

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London Session – December 29, 2008 7:51 AM

Trading activity picked up a touch following last week’s holiday lull and this carried on into the London session.  The buck headed lower against the euro but was higher against other majors.  The only fresh piece of economic data out of the eurozone was Italian business confidence and it sank to 66.6 in December from a 71.6 print the prior month.  Euro rallied nonetheless and EUR/USD added 35 pips towards the 1.43 level.  The session high was just above 1.4360 and profit taking looks likely on moves into the 1.44 area.
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Euro Finds Strength in Forex Trading

The currency market favors the euroThe euro appears to have found significant strength in forex trading on the currency market recently. After falling to a dollar rally over a couple of months, the euro appears to be back — and hoping to challenge .45 again soon.

The currency market is favoring the euro against both the U.S. dollar and the U.K. pound. Bother currencies are finding it hard to stop the euro in forex trading as their economies continue to struggle.

Much of the success the euro is enjoying in forex trading, however, is coming in the form of economic perception. The ECB has been exhibiting a hawkish tone lately, and that has been helping the euro in forex trading. It remains to be seen whether such claims are justified.

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• More on the Euro in Forex Trading
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• Euro in Forex Trading
  FX trading on the currency market

U.K. Pound Continues to Fall Against Euro in Forex Trading

Currency trading with sterlingThe U.K. pound is falling to the euro in forex trading on the currency market, dropping ever-closer to parity. Ever since the 15-nation currency was introduced in 1999, in currency trading sterling has had the clear advantage. But now, parity looms as the British economy sinks dramatically.

Additionally, the ascendancy of the euro in forex trading against the U.K. pound is being helped along by the hawkish tone being adopted by the European Central Bank. There are hopes that the ECB will soon stop monetary easing, while the Bank of England is expected to continue to keep cutting interest rates.

The British economy continues to flounder as retail sales, consumer spending and home prices all point to continued weakness.

See Also

• U.K. Pound in Forex Trading
  Currency trading on the FX market

Ruble Continues Slide in Currency Trading

Russia devalues ruble for 12th time in seven weeksThe Russian ruble continues its slide in currency trading as economic factors and other issues force the government to devalue the currency again. The ruble is falling to record lows against the euro in forex trading, and it isn’t doing too well against the U.S. dollar and other major currencies.

The ruble is a managed currency, meaning that the Russian government takes an active role in setting its price on the currency market. Bloomberg reports on the factors leading to continued ruble devaluation:

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• Forex News and Information
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• More on Ruble Devaluation
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U.S. Dollar Weakens in Forex Trading

Israeli strokes on Gaza contribute to a weaker greenback in currency tradingThe U.S. dollar is weakening in forex trading on the currency market this morning. The major even that is contributing to U.S. dollar weakness is the fact that Israel started attacks on Gaza over the weekend.

Worries about oil delivery out of the Middle East are sending oil prices higher — and the greenback lower in currency trading.

Another factor affecting the U.S. dollar in forex trading is the fact that economic factors continue to show weakness. Retail sales are especially damning right now, as they show consumer spending down, and the government is hoping to stimulate the economy with higher consumer spending.

This week is likely to be relatively quiet in currency trading (the week between Christmas and New Year often is). However, it is a good idea to look to further clues about dollar weakness tomorrow with the release of Consumer Confidence data and Wednesday’s release of jobless information.

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• More on the Euro Against the U.S. Dollar in Forex Trading
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• Greenback in Currency Trading
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