New York Session – June 28, 2010 5:42 PM
June 28, 2010
The EUR came under intensified selling pressure over concerns that the one-year ECB lending facility maturing on Thursday may spark another funding crisis for European banks. Lingering fears that European plans to slash budget deficits also weighed on the outlook for European growth, adding further pressure on the common currency. In EUR/USD, after failing just shy of 1.2400, the pair slid lower to finish out near 1.2280 in late NY trading. EUR/CHF plunged to new all time lows, dropping below 1.3500 and falling to finish just below 1.3350. In EUR/GBP, the pair dropped below 0.8200 and lost ground to end near 0.8125, its lowest level since late 2008. The dollar was mostly steady against the JPY and held to a narrow range between about 89.10/50. Stock markets saw minor losses, with the S&P losing around -0.2%. Gold prices retreated sharply after attempts to push the metal to a new record high came up short. Gold lost about -.50 to close around 38/oz. Full text »
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Euro Lower in Currency Trading
June 28, 2010
Challenges remain for the euro in forex trading
The euro continues to struggle in currency trading on the FX market, heading lower. While it is not plummeting as it was a few weeks ago, the euro still remains weak. While the euro is a little bit lower in forex trading against the U.S. dollar, one of the real issues is the euro’s struggle against the Swiss franc.
The Swiss National Bank has been trying to slow the franc’s gain against the euro in forex trading, but has been largely unsuccessful. GFT’s Boris Schlossberg reports on the euro’s position in forex trading against the Swiss franc:
The decline in the pair has been relentless as European investors seek the safety of the franc while the SNB has essentially given up on its attempts to slow down the ascent. Despite franc’s recent strength, Swiss economic performance including its vital export sector has not suffered much of negative impact so far only emboldening specs to push the pair lower.
See Also
- Euro in Forex Trading
Currency trading on the FX market
U.S. Dollar Mixed in Forex Trading
June 28, 2010
Major currencies mostly ragebound so far
For the most part, major currencies are largely rangebound at this point today. Risk has made a small appearance, but it has been unable to maintain. As a result, the U.S. dollar is mixed in forex trading, up against the euro, but down against the pound.
Some of the things that might influence currency trading on the FX market today include the latest news about the G-20 pledges to cut deficits, as well as the news that consumer spending has increased in the U.S.
The euro, however, remains weak in forex trading. Sovereign debt fears have not been overcome yet, and it may be some time before forex traders feel comfortable with the euro again.
See Also
- U.S. Dollar in Forex Trading
Currency trading on the FX market
London Session – June 28, 2010 6:17 AM
June 28, 2010
There has been little net change in EUR/USD during London hours; the EUR having pulled back some ground following initial losses. The G-20 meeting brought little by way of market incentives. The communiqué did differ from the Pittsburg meeting insofar now the focus is now squarely on deficit and debt rather than on growth. That said, growth is still clearly a prime concern particularly in the US and the G-20’s aim to halve budget deficits by 2013 is not aggressive by European standards. There was no market reaction to the G-20’s pledge on deficit reduction with the tone of the recent Finance Ministers meeting having prepared the market for this change of focus. On the issue of bank reform it is clear that politicians are sensitive to the need to first answer their national interests. This explains why a concerted G-20 approach to the banking sector appears to be giving way to a series of unilateral reform bills. Generally banking sector reform looks likely to be implemented over a longer period than initially considered likely. This is a direct consequence of concerns over the impact that reform could have on growth. While the watering down of the US financial reform bill announced last Friday and of Basel III announced earlier in the week supported the banking sector, the market remains fearful that banks, particularly in Europe, will have to suffer write-down sooner or later and this is likely to keep the EUR vulnerable in the months ahead. Full text »
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Asia Session – June 28, 2010 2:05 AM
June 28, 2010
With no real surprises out of the G20 meeting in Toronto over the weekend, markets moved sideways with the US Dollar remaining close to Friday’s lows. G20 leaders offered no earth-shattering news after a weekend of meetings in Toronto, Canada, but planned to continue current stimulus plans and take actions needed in order to keep the current global recovery on track. EUR/USD remained hovered near Friday’s highs of 1.2393, but the pair was unable to break through the 1.2400 big figure, falling short by 4 pips. The 30 pip range of the pair helped to demonstrate how quiet the start of the week really was in Asia. Against the Yen, the Euro made slight gains, just falling short of the 110.80 mark after a start near 110.45. GBP/JPY hit a high of 134.40, although the pair remained close to unchanged near 134.50. Asian equities were mixed on the day. Full text »
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Outlook for the Aussie
June 25, 2010
Kathy Lien, director of currency research at GFT believes the mining tax has not been fully priced into the Australian dollar as yet. She tells CNBC’s Karen Tso, Martin Soong and Sri Jegarajah that uncertainity about policy changes could cap gains in the
Maneuvering the Markets
June 25, 2010
Insight on the passing of financial regulation, with Jim Iuorio, TJM Institutional Services; Tim O’Brien, The Gold Report; Boris Schlossberg, GFT Forex; Peter Beutel, Cameron Hanover; and Anne Mulcahy, former Xerox chairman & CEO.
More Deflation Ahead for Japan?
June 25, 2010
Japanese yen forex trading forecast
It is quite likely that Japan will consider to see deflation in its economy. The pace has slowed somewhat, but deflation is still an issue in Japan, as evidenced by the yen’s rise against the euro — and its strength against the U.S. dollar.
The situation in Japan continues to be tricky, and one wonders whether more political resignations will come if the country can’t get its economic growth under control.
GFT’s Boris Schlossberg examines the Japanese yen forex trading forecast and Japan’s deflation in FX360:
Despite a pickup in consumer demand deflation is likely to remain in place for the foreseeable future given the strength of the yen against the euro this year. The recent strengthening of the yen against the dollar with the pair dropping through the key 90.00 level will only exacerbate this trend in the second half of 2010.
See Also
- Japanese Yen Forex Trends
Forex trading forecast
U.S. GDP Revised Lower, Bank Regulation Passes House and Senate
June 25, 2010
U.S. dollar higher in forex trading
It’s been an interesting morning so far. The U.S. GDP was revised lower for Quarter 1 of 2010. Originally, the estimate had been for 3% growth in the first quarter, but the new numbers suggest that the economy only grew 2.7%.
On top of that, the House and Senate agreed on bank reform, enacting sweeping regulation on a scale not seen since the Great Depression. The legislation address capital, leverage and derivatives, as well as speculative trading. On top of that, a consumer protection agency has been created.
This news, along with continued debt fears in Europe as a G-20 summit gets underway in Toronto, has some wondering about the health of the global recovery from this recession. As this uncertainty sets in, so does risk aversion. The U.S. dollar is moving higher in forex trading against the euro.
See Also
- U.S. Dollar Forex Trading
Forex trading on the currency market
More Downside for Euro
June 25, 2010
Airtime: Thurs. Jun. 24 2010 | 7:20 PM ET Kathy Lien, director of currency research at GFT, believes there is a lot of risk surrounding the euro. She tells Martin Soong and Karen that there is a large possibility that Europe’s fiscal crisis could
