Asia Session – January 28, 2010 1:43 AM
January 28, 2010
Once again Asia was victim to a choppy trade day with slick moves into risk aversion early in the day that were erased as the upbeat tone of the State of the Union Address enhanced trader appetite for riskier assets. Early session moves were attributed to stops were triggered in EUR/USD through 1.3990 and then again through 1.3960 to final lows near 1.3940. Most risk pairs hit lows at this point of the day, with GBP/USD hitting 1.6135, EUR/JPY touching 125.85, and AUD/USD landing at 0.8930. Full text »
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New York Session – January 27, 2010 4:59 PM
January 27, 2010
The price action in the NY session was nothing to sneeze at. The Geithner testimony turned out to be anti-climatic but kept the market rather heavy for the better part of the session. The FOMC statement, however, would eventually turn things around. One of the mark-ups to the economic outlook was the subtle change in the characterization of household spending from “appears to be” to “is” expanding. The committee also announced that most of the extraordinary liquidity programs will end on schedule, dealing a blow to those who thought the punchbowl would be left out for longer. Even the rate outlook was more hawkish at the margin. Full text »
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Euro Finds Support at 1.4000
January 27, 2010
Euro in forex trading
The risk trade has been under pressure all night in currency trading, with the Aussie one of the few bright spots, and even that is fading as risk aversion overwhelms the rally. The euro has been struggling in forex trading, heading lower.
However, there are hopes that the euro has found support at 1.4000. The euro has been losing ground to the U.S. dollar on continues risk aversion, and the situation in Greece hasn’t been all that helpful, either.
It will be interesting to see what happens as the day progress. While euro seems to have support at 1.4000 for now, continued risk aversion and economic concerns could actually send the 16-nation currency plunging through that level.
See Also
- Euro in Forex Trading
Looking for currency trading trends
The Reserve Bank of Australia Could Hold Off on Rate Hikes
January 27, 2010
Aussie performance in forex trading
Even thought the Aussie is rallying in forex trading (despite the risk aversion present), there are concerns that the rally could come to an abrupt end if the Reserve Bank of Australia decides to halt its rate hikes.
Australia is in a bit of a delicate position right now, with its strong economic growth, but concerned about the more sluggish prospects of the wider global economy. GFT’s Boris Schlossberg reports in FX360 on the RBA’s position:
Australian fiscal officials also adopted a relatively cautious tone, with Treasurer Wayne Swan noting that inflation pressures “remain subdued.” Australian policymakers must balance the strong domestic recovery against the much more lackluster rebound in global demand.
China could help solve the balance problem, though. The country is limiting its lending in an effort to slow its growth, and that may result in a slowing for the Australian economy as well.
See Also
- Rate Hikes and Australia
Forex trading on the currency market
U.S. Dollar Lower Against Japanese Yen in Forex Trading
January 27, 2010
Risk aversion in place on the currency market
The U.S. dollar is still moving lower against the Japanese yen in forex trading on the currency market. As economic uncertainty remains a big part of the picture right now, risk aversion is the name of the gain as the U.S. dollar gains against the euro and pound, but drops against the yen.
The World Economic Forum in Davos might provide a little bit of help for the risk picture, but that is unlikely anytime really soon. Investors seem to content to consolidate their positions right now and kind of wait things out a little bit.
Other items that are likely to affect forex trading on the currency market in the relatively near future include tonight’s State of the Union from President Barack Obama and the Fed policy statement this afternoon.
See Also
- U.S. Dollar and Economic News
Forex trading on the currency market
London Session – January 27, 2010 6:09 AM
January 27, 2010
In sharp contrast to their position during the first couple of weeks into January, world stock markets are almost universally lower in the year to date. Chinese policy tightening, poor Q4 growth in Korea, expectations for only a sluggish recovery in the West and Obama’s bank proposals have all put the frighteners on the market. The overnight session in Asia maintained this theme with the Hang Sang increasing yesterday’s heavy falls and the JPY higher across the board. In Europe, however, tensions have eased. JPY gains have been pared back, the EUR and the AUD have made some headway vs the USD and sterling has bounced strongly following yesterday’s data induced decline. Full text »
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Asia Session – January 27, 2010 1:52 AM
January 27, 2010
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New York Session – January 26, 2010 7:08 PM
January 26, 2010
The NY session was an absolute rollercoaster ride. Equities traded with a bid tone early on as better US economic data helped boost risk appetite. US consumer confidence printed 55.9 in January from an upwardly revised 53.6 the prior month. The details of the report were constructive as well, with the labor differential (jobs plentiful minus hard to get) improving for the second consecutive month. EUR/JPY continued to prove one of the more correlated crosses with equities and it promptly rallied into the 126.40/50 highs on the back of the risk rally. The market would sell off into the close as the Geithner testimony and Obama’s State of the Union address loom tomorrow, providing plenty of event risk to chew on. The correction sent EUR/JPY back down towards the 126.10 zone on the follow. Full text »
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Greenback Gains in Forex Trading
January 26, 2010
Curreny trading with the U.S. dollar
The greenback is gaining in forex trading on the currency market this morning as risk aversion sets in. Even though the focus is likely to shift to the economy in terms of currency trading with the U.S. dollar as the week progresses, right now the focus is on risk.
With China limiting its lending, concerns about global growth are paramount. Volatility is high as forex traders rush to reposition themselves and try to figure out what could happen next.
For now, though, the U.S. dollar is gaining across the board, with the exception of its loss with regard to the Japanese yen.
See Also
- Currency Trading with the U.S. Dollar
Forex trading on the currency market
U.S. Dollar Awaits Economic Developments
January 26, 2010
Forex trading forecast for the greenback
The U.S. dollar is awaiting economic developments in a number of quarters this week. While the dollar has gotten a boost in currency trading, thanks to risk aversion due to news out of China, there are still concerns about the forex trading forecast.
Indeed, with the Fed meeting to determine questions of policy, and with GDP from the fourth quarter of 2009 due out, the economy is likely to be the focus. GFT’s Kathy Lien reports in FX360 on factors to consider with the forex trading forecast for the greenback:
With the Federal Reserve’s monetary policy announcement and fourth quarter GDP report due for release later this week, forex traders will undoubtedly turn their focus back to the outlook for the U.S. economy. However politics could still affect how the dollar trades with Bernanke’s confirmation hanging by a thread and President Obama scheduled to deliver his State of the Union Address on Wednesday.
See Also
- Economic Data and the Forex Trading Forecast
Currency trading on the FX market
