Canadian Dollar Forex Trading Forecast
June 29, 2009
Loonie poised for monthly drop in currency trading
The Canadian dollar forex trading forecast calls for a monthly decline for the loonie in currency trading. The Canadian dollar has been struggling recently — especially against the U.S. dollar.
Loonie has been vulnerable in currency trading due to concerns about commodities. With oil prices volatile and often lower, thanks to economic concerns, the Canadian dollar has been following suit.
For now, the Canadian dollar forex trading forecast calls for a slight decline against the U.S. dollar, achieved during trading that is mostly rangebound.
See Also
- Loonie in Currency Trading
Forex trading forecast with world currencies
European Retail Sales Continue to Indicate Recession
June 29, 2009
Euro gains anyway, thanks to U.S. stock market gains
In the euro zone, economic data is coming out with regard to retail sales. Contraction continues for the 13th month, and this has some concerned about a continuing recession. However, it is important to note that sentiment is improving somewhat. ActionForex reports on the current state of the Bloomberg Retail PMI:
In France, Italy, and Germany, the largest three economies in the euro zone, the indicator is still below 50 also. The reading in France is the best; however, it could not breach the 50 level as it came in at 49.4 which reflect contraction. Nonetheless, the severity of the contraction in this sector has eased but it did not exceed 50 yet coming in at 47.5 only.
While this news was bringing the euro down in forex trading against the dollar earlier, things have changed by now. Help from the U.S. stock market is boosting some confidence, and prompting some dabbling in risk appetite. For now, the euro is on the rise, despite its lackluster economic data.
See Also
- Euro in Forex Trading
Currency trading on the FX market
U.S. Treasuries Head Higher on Bond Market
June 29, 2009
Bond yields drop as China voices support for U.S. assets
U.S. Treasuries are heading higher on the bond market today, thanks to earlier gains by the U.S. dollar on comments from China. It is important to note that Treasury bond prices move opposite yields, so as Treasuries gain, yields drop. MarketWatch describes the changes to the bond market this morning:
Longer-dated debt gained more than short-term securities as investors reversed trades that bet on long-term yields rising more due to inflation, greater debt issuance, and an economic recovery making other assets more attractive.
However, things might change in the near future, depending on how investors view the economy, and on whether or not the Dow can hold on to its early gains in the stock market.
See Also
- Forex Trading with the U.S. Dollar
Currency trading on the forex market
Yen Reverses in Forex Trading After Making Some Gains
June 29, 2009
Japanese yen in currency trading
The Japanese yen is falling in currency trading on the FX market this morning after making some gains. Earlier, the yen moved higher in forex trading against the U.S. dollar. Concerns about the global economy favored the yen. However, things are changing right now as risk appetite begins to increase.
Previously, the yen was supported by slight improvements in economic data, as well as concerns about the economies of other countries. Now, though, with the U.S. stock market opening higher behind gains in European markets, the yen is beginning to fall out of favor.
See Also
- Yen in Currency Trading
Forex trading on the currency market
U.S. Dollar Gains on Chinese Announcement
June 29, 2009
Chinese will retain U.S. dollar assets
China announced that it would not be making efforts to get rid of the U.S. dollar as the world’s reserve currency any time soon. Indeed, China announced its support for the dollar as the world’s reserve currency.
The move helped increase confidence in the greenback, and led to strength for the dollar in forex trading. Boris Schlossberg reports in FX360 about the impact the Chinese announcement is having on the greenback in currency trading:
The dollar gained broadly across the board at the start of trading this week after Chinese officials reaffirmed the reserve status of the greenback at the BIS conference at Basel over the weekend. PBOC governor Zhou Xiaochuan told reporters that China’s “foreign exchange reserve policy is always quite stable”, making a tacit acknowledgment that for the time being the Chinese do not intend to diversify out of their dollar denominated assets.
This does not mean that China’s ambitions to be the next economic superpower have faded. Indeed, China continues to position the yuan through currency swaps with emerging market economies. It may be that China is getting ready to take over as the reserve currency two or three decades down the road.
See Also
- U.S. Dollar in Forex Trading
Currency trading on the FX market
London Session – June 29, 2009 5:49 AM
June 29, 2009
The dollar had an early boost this morning as Chinese central bank governor Xiaochuan said that the nation would not change its currency reserve suddenly. However, EUR/USD has stayed above the 1.3980 area consistent with the notion that range trading seems to be the order of the day. Cable once again stole the limelight early on by surging from the 1.6440 level to 1.6540 in a pattern that mimicked that seen on Friday morning, but cable remained well within the parameters of its broad 1.62000 to 1.6600 range. Full text »
del.icio.us | Technorati | Stumble It!
Forex headlines on Bloomberg with Boris Schlossberg
June 29, 2009
China, Brazil to move away from the US dollar?
What do the recent statements made by both China and Brazil mean for the world’s most popular currency: the US dollar? Watch Boris as he provides professional opinion on the dollar’s outlook and possible dispels rumor and speculation on the reserve currencies and the recent comments from the China and Brazil.
http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/voM1pv9pfRco.asf
Asia Session – June 29, 2009 1:33 AM
June 29, 2009
The US Dollar began the new week firmer after statements made by China on Friday called the greenback’s global reserve status into question adding to the currency’s slide last week. The start of the week in Asia saw the Dollar make up some of the ground that was lost on Friday, with the session seeing the buck strengthen across the board. EUR/USD saw an early pop to the day’s high near 1.4078, but from there the slide began, taking the pair about 75 pips lower to just over the 1.4000 figure. A reversal later after the lunch break took about 25 pips away from that move as China and Brazil’s central banks announced that they were working on a system of currency exchange between the two countries that would bypass the global reserve currency which of course is the mighty US dollar. The same pattern seen in the EUR/USD was followed by the British Pound, as it dropped about 70 pips from the high to just near the 1.650 support level and subsequently bounced about 30 pips heading into London trading. As could be expected, the higher yielding Aussie and Kiwi dollars were both sold against the buck to the tune of about 75 pips and 50 pips respectfully. Full text »
del.icio.us | Technorati | Stumble It!
06/21/2009 – Consolidation may give way to USD rebound
June 27, 2009
* Consolidation may give way to USD rebound
* SNB stays the course on CHF intervention, for now
* Record US note issuance and Fed meeting in focus
* Key data and events to watch next week
Major financial markets spent another week knocking around in seemingly impenetrable ranges, and FX was no exception. EUR/USD opened the week by testing the pivotal 1.3750 level, only to spend the rest of the week recovering higher, but importantly failed to sustain a break of 1.4000 on several occasions. Cable was wickedly choppy, bouncing between roughly 1.6200 and 1.6500 on multiple round-trips, before closing the week mostly unchanged. USD/JPY showed a bit more direction, but stayed within ranges that have held for the month to date. For the week, the USD index, a gauge of the USD against six other major currencies, looks set to finish out nearly unchanged.. Full text »
digg this! | del.icio.us | Technorati | Stumble It!
06/28/2009 – The never-ending consolidation is about to end
June 26, 2009
* The never-ending consolidation is about to end
* Most medium-term concerns about the US dollar are overblown
* ECB rate decision outlook
* Key data and events to watch next week
The month of June has been characterized by a seemingly endless consolidation in both USD-currency pairs and in many cross-currency pairs as well, not to mention stocks and other major asset markets. Looking back, it’s perhaps easiest to view the consolidation in terms of investor risk appetites and the stabilization in the global downturn. Since March, generally less-worse data has seen risk appetites improve, leading to substantial gains in risky assets like stocks, commodities, and, in FX, higher JPY-crosses and a weaker USD… Full text »
