Asia Session – December 30, 2009 12:52 AM

December 30, 2009

With improving sentiment on the recovering US economy, the Dollar continued to make strides in Asia as it hit a pre Christmas high of 1.4306 against the Euro. Despite the firming of the greenback today, the session was clearly victim of year end trading as small ranges and quiet moves prevailed. EUR/USD opened near highs of 1.4355 and eventually dropped below 1.4310 on the day. Full text » | Technorati | Stumble It!

London Session – December 29, 2009 1:23 PM

December 29, 2009

The buck came under pressure as the 2009 relationship of higher risk, lower dollar has reared its ugly head in London trading. The overall flight seems to be towards those currencies whose countries offer a much higher comparable rate of return for seemingly the same amount of risk. Thus the Australian and Canadian dollars are much better bid against the old greenback. Full text » | Technorati | Stumble It!

Thin Holiday Trade Keeps U.S. Dollar Down in Forex Trading

December 29, 2009

Currency trading with the greenback

Today is only a three-day week for U.S. financial markets, and that expectation is keeping the U.S. dollar down in forex trading. In currency trading, the greenback is struggling right now as stocks improve due to the Santa Claus Rally.

MarketWatch reports on the reason for the drop in the U.S. dollar:

"With just a three-day week in which to get involved, most investors will choose to keep their powder dry," wrote strategists at Moneycorp, a foreign-exchange broker. "The risk for the dollar is of year-end profit-taking."

The thin trading and profit taking is why the U.S. dollar is not benefiting from gold weakness today. Normally, when gold is lower, it supports the dollar in forex trading. Not today, though. Instead, currency trading continues to cause problems for the greenback.

See Also

Gold Prices Flat Today

December 29, 2009

Gold prices unable to capitalize on U.S. dollar weakness

Normally, gold prices move inversely to the U.S. dollar, heading higher as the greenback moves lower in forex trading. However, this has not been the case this morning. Gold prices have been relatively flat, and even though the U.S. dollar is showing weakness in currency trading, gold remains down.

And it doesn’t look as though is seriously going to get a real boost anytime soon. FX Street looks at the forecast for gold prices:

"In terms of technical trends, the prospects for gold look strong, but the underlying fundamentals look weak," says a note from Barclays Capital in London, pointing to a third year of falling jewelry demand in the face of record-high gold prices.

The conditions to see a gold rally are fairly good, with inflation expected and U.S. dollar weakness almost guaranteed. However, it isn’t happening. Gold still appears to be correcting from its recent record highs.

See Also

Asia Session – December 29, 2009 3:21 AM

December 29, 2009

           As we head into the end of the year , the markets are starting to feel a bit spent. With no significant data , there was really no catalyst  available to induce any real moves in the markets. Most major pairs had 20 pip ranges or less on what I would say was well below average volume . GOLD showed some signs of life as it posted a high near 08. and a low near 01. The NIKKEI is basically flat, down -0.1%. We would expect liquidity to lessen even further in ensuing sessions as traders await year end with an eye towards 2010. Full text » | Technorati | Stumble It!

New York Session – December 28, 2009 3:42 PM

December 28, 2009

The price action in NY was lackluster as markets were in full holiday mode. The only pieces of news were from the Treasury and Fed. The Treasury released its 2-year auction results and they were sloppy. While demand was decent, with a near 3.0 bid/cover, the rate was about 2 basis points above where the market had been trading. This continues to suggest that investors are demanding more return for their risk of holding US paper. The lack of volume, however, made any reaction to the news limited. Full text » | Technorati | Stumble It!

U.S. Dollar Lower in Rangebound Forex Trading

December 28, 2009

Currency trading on the FX market

The U.S. dollar is lower in rangebound forex trading this morning as investors look to the week ahead with some optimism. The Santa Claus rally is expected to help U.S. stocks, and futures are already pointing to a higher open.

Additionally, forex traders are looking to lock in a few gains, and major currencies are up against the greenback. The euro and the pound are both higher in currency trading on the FX market, and even the yen is up slightly against the greenback.

However, big moves are not expected in any market this week, with things likely to be rather staid for the most part.

See Also

Asia Session – December 28, 2009 1:11 AM

December 28, 2009

The holiday shortened week in Asia began as could be expected, range bound and slow.  This weekend’s attempted terrorist attack had no effect on the markets as they opened in close proximity to Friday’s closing levels, and The Boxing Day holiday which saw Australia and New Zealand out helped add to the session’s sluggish pace. EUR/USD opened near the 1.4390 level, about 20 pips higher than Friday’s close, and after meandering in a 40 or so pip range, closed the day out at the same levels. Most other majors looked to close out the day at levels close to opening rates. AUD/USD was the lone exception as bidders took advantage of the thinned market and pushed the pair from 0.8830 to 0.8885 highs on the day. Gold also made a nice move higher, gaining almost in value to 13.00 highs on the day. Japanese Industrial Production and Retail Sales both came in slightly better than expected to little or no reaction from the yen. Full text » | Technorati | Stumble It!

Merry Christmas from GFT Forex!

December 24, 2009

Wishing you a happy holiday

Today is Christmas Eve, and all trading is expected to be thin as North Americans get ready for the Christmas holiday. (The U.S. dollar is down this morning.) Many Europeans are getting ready as well, and Christmas is a holiday in Australia and New Zealand. In Asia, forex trading, as well as stock and commodities trading, is expected to be light, since it is widely known that many markets will be closed tomorrow for the Christmas holiday.

We hope that you have had the gift of a successful year, and that you enjoy this holiday season. 

Merry Christmas!

See Also

London Session – December 24, 2009 5:47 AM

December 24, 2009

EUR buyers finally emerged at the EUR/USD 1.4250 this week and have pushed EUR/USD back to 1.4400 this morning.  It is difficult to draw any strong conclusion from what is very illiquid activity, particular give that the pace of the USD’s Dec gains had made it ripe for profit-taking.  That said the failure of the USD to extend its gains this week is interesting because it does coincide with some disappointing US economic data.  Full text » | Technorati | Stumble It!

Next Page »