London Session – May 28, 2009 6:57 AM
May 28, 2009
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Candian Dollar Forex Trading Forecast
May 28, 2009
Loonie moves higher in currency trading
The Canadian dollar forex trading forecast is calling for improvement as oil prices rise. OPEC has decided not to cut production (it is leaving it unchanged), and is hoping for higher demand as signs of recession begin to fade from the global economy.
The loonie is benefiting in currency trading from this news of higher oil prices. The Canadian economy relies on oil as an export, and these oil price increases are good news for economic growth.
Other commodity currencies are expected to do well also as the global economy improves. Demand is expected to pick up for industry as well as consumer spending, and that will mean that commodities will be back in demand. For commodity currencies, that means higher trading on the FX market.
See Also
- More on Oil Prices
Oil prices as the recession fades - Loonie in Currency Trading
Forex trading with commodity currencies
Japanese Yen Falls in Forex Trading
May 28, 2009
Japanese investors turn to overseas markets
The Japanese yen is falling in forex trading this morning as prospects of an improving economy lure Japanese investors to foreign assets. The yen is one of the currencies falling to the U.S. dollar in FX trading this morning.
While other currencies are pulling back against the U.S. dollar due to some lingering uncertainty about the economy (while awaiting today’s U.S. economic data), the yen is falling as Japanese investors start to test the waters.
There are signs that the global economy may be improving. At least, there are signs that the global economy is not getting any worse. This is encouraging Japanese investors to begin looking at overseas markets and buying foreign assets. They are no longer content with the capital preservation offered by domestic assets; they are looking for returns.
Indeed, as the global economy moves out of recession and into recovery, the Japanese yen is expected to weaken in forex trading. It appears to have already begun.
See Also
- Japanese Yen in Currency Trading
Forex trading with world currencies
U.K. Pound Pulls Back in FX Trading
May 28, 2009
Retail sales data sends sterling lower in currency trading
The U.K. pound is pulling back in FX trading on the currency market today. After gaining slightly, the pound is now down against the U.S. dollar as economic data once again punctures the optimistic bubble that was beginning to form with regard to the British economy.
Today, the economic data shows that U.K. retail sales for May are trending downward, leading to some losses. However, even with the somewhat grim economic data, there is a silver lining for U.K. retail sales, reports the Financial Times:
Excluding last month, May still saw the best result for retailers in nearly a year, and provided further evidence of the easing of the recession.
“High street spending remains surprisingly strong, all things considered,” said Vicky Redwood of Capital Economics.
While the recession may not be over in Britain, it is thought to be easing. This has prompted the sterling to move higher in recent days, even moving through 1.6000 yesterday against the U.S. dollar. The U.K. pound has fallen back below that important psychological level in FX trading, but there is hope among some that sterling is getting ready for another good run in currency trading.
See Also
- Sterling in Currency Trading
FX trading on the currency market
U.S. Dollar Mostly Higher in Currency Trading
May 28, 2009
Greenback higher against most major currencies in forex trading
The greenback is higher against most major currencies in forex trading this morning. Right now, forex traders are waiting for housing market data, payroll data and considering the effects of the rise in yields on government bonds.
The U.S. dollar is gaining against most major currencies, moving higher against the U.K. pound and the Japanese yen. The euro is the only major in forex trading that is gaining against the U.S. dollar right now.
For the most part, economic data coming out of other economies is creating the main impetus for the greenback’s performance in forex trading. However, the story could easily change once economic data is released here in the U.S.
It remains to be seen how well the dollar does long term in currency trading on the FX market. At some point dollar weakness is expected to set in earnestly, but that is not expected to happen until the global economy starts a true economic recovery.
See Also
- More on the U.S. Dollar in Currency Trading
Why the greenback is doing well against other currencies in forex trading - Greenback in Forex Trading
Currency trading on the FX market
German Unemployment Data Surprises, In a Pleasant Way
May 28, 2009
Euro inches higher in forex trading
German unemployment data is in, and it appears that, for the month of May so far, no jobs have been lost. This is surprising, since many had expected some job losses to continue. The pleasant surprise is expected to bring positivity to the euro zone economy, reports Boris Schlossberg in FX360:
Overall the German unemployment rate declined to 8.2% from 8.3% the month earlier coming in much better than the market expectations of an 8.4% rise. The positive reversal in German labor market conditions is a testament to improving global demand and may bode well for future consumption in the region although latest Retail PMI readings continued to show a decline to 47.1 from 48.4 the month prior.
Germany is the largest economy in the euro zone (in all of Europe, for that matter), and it has profound influence on the euro in forex trading. As this news brings a certain level of optimism with regard to euro zone economic recovery, it is little surprise that the euro has moved slightly higher in forex trading on the currency market.
See Also
- Euro in Forex Trading
Forex trading on the currency market
Азиатская Сессия – May 28, 2009 3:21 AM
May 28, 2009
Сегодняшняя сессия Азии стала свидетелем возобновления ослабления JPY, поскольку риск тут был основной тематикой. Пара USJPY прыгнула над самой высокой точкой НЙ, ближе к фигуре 96 и кроссы Йены пошли вслед за ней. Пара EURJPY выросла почти на 100 пунктов с уровней открытия, и пара AUDJPY поднялась на ту же сумму из-за дополнительной помощи от окрепшей пары AUDUSD. Трейдеры которые ждали закрепления прибыли в результате массовых доходов в долларе в заключительных часах НЙ, были вознаграждены почти во всех основных валютах. Full text »
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Asia Session – May 27, 2009 10:34 PM
May 27, 2009
Today’s Asia session saw a resumption of JPY weakness, as risk seemed to be the theme. USJPY jumped through NY highs close to the 96 handle and the Yen crosses followed suit. EURJPY was higher by nearly 100 pips from opening levels, and AUDJPY was higher by the same with some slight help from a strengthening AUDUSD. Traders looking for some profit taking following massive gains in the greenback into the closing hours of NY were rewarded in most of the majors Full text »
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New York Session – May 27, 2009 5:07 PM
May 27, 2009
Risk aversion was the flavor of the NY session as US equities nearly gave up all of yesterday’s stellar gains. The S&P closed below 900 and suggest a test of 880/875 support is now in the offing. The selling in risk helped buoy the US dollar on the follow. Economic data in the session was lackluster. The US existing home sales report was nothing to write home about as the details remained ominous. Inventories continued to worsen with the months’ supply now at 10.2 from 9.6 prior and the highest since November to boot. Once again nearly half of the sales were in the “distressed” property space. Prices are running at a dismal -15.4% annual rate (worst since January) and are poised to head lower if continued employment losses force sellers to further capitulate on price. The report just throws cold water on the notion that the bottom in housing is upon us. Full text »
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Euro Attempts 1.4000 — Again
May 27, 2009
Euro can’t seem to break the barrier in forex trading
The euro is making another run at 1.4000 against the U.S. dollar in forex trading today. This entire week so far, EUR/USD has been trying to break and hold through that critical psychological level. So far, though, no luck has been had in getting through there, and staying for any length of time. Forex traders aren’t quite ready to support the euro in forex trading at 1.4000.
However, even if the euro can’t quite close the deal right now, there are expectations that it will happen in the relatively near future. Kathy Lien reports in FX360 that EUR/USD at 1.4000 is only a matter of time:
This means that the traders who want to be long are already getting long, leaving fewer buyers on the sidelines. Yet, the rally in oil
prices will help the EUR/USD
As long as there is some optimism about economic recovery, the euro is likely to come back. However, news out of the euro zone will need to show some improvement in order truly lend support to its currency.
See Also
- Euro in Forex Trading
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