Asia Session – September 29, 2010 2:04 AM

For the third day in a row we have been victimized by a slow session in Asia. Currency markets looked to continue their recent trend of reserving all the big moves for the New York session, and saving the remainder of the day consolidating in small ranges. The focus of the day today was clearly the Japanese Tankan Manufacturing survey, which put up some better than expected numbers with a +8 versus +7 expectation, and +2 versus -2 for the Non-manufacturing data. Not much reaction out of the USD/JPY though, but it eventually touched 84.05 on a high before melting to lows near 83.65 later in the day. The 83.65 low represents a level not seen since “Pre-intervention” days and has put traders on alert for any signs of another wave of Bank of Japan intervention. Market expectations for intervention will increase with the firming of the yen although no one knows where the BOJ has put the so called “line in the sand”. Full text »

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New York Session – September 28, 2010 4:26 PM

The U.S. dollar tumbled as the economic data stream out of the U.S. continued to deteriorate. The eroding economic outlook increased the likelihood that the Fed will provide additional stimulus in the form of quantitative easing which is ultimately a dollar negative. This morning saw the release of the Conference Board Consumer Confidence report which came in weaker than the expected 52.1 with a disappointing print of 48.5, down from the prior month’s 53.2. This was the lowest print since February of this year. The Richmond Fed Manufacturing Index missed the expectations of +6 as it was released at -2 (prior +11). Data also included the S&P/Case Shiller Home Price Index which increased only 3.18% from July 09, the smallest YoY increase since March and the 20 City MoM composite decreased by worse than the anticipated -0.10% to -0.13% from the prior +0.24% (revised lower from +0.28%). EUR/USD rallied strongly above the key 1.3500 level to make highs around 1.3595 and is currently trading around 1.3585. Full text »

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London Session – September 28, 2010 9:30 AM

The euro was under pressure this morning concerns about the periphery reared their heads once again came to the fore. This week the focus is chiefly centred on Ireland after a large credit rating agency estimated the cost to the government of winding up Anglo Irish Bank may reach EUR35bn. The scale of the cost could trigger a downgrade to Ireland’s sovereign credit rating, the agency added. On top of this, an article in the Spanish press surfaced saying that Spain risks losing its triple A credit rating on its own debt concerns. Full text »

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Can the U.K. Pound Retain the Upper Hand in Currency Trading?

Sterling forex trading forecast

The U.K. pound is doing quite well in currency trading on the FX market right now. Indeed, the sterling forex trading forecast indicates that the currency is likely to continue doing well — especially if recent British economic growth continues.

However, there are still problems that could limit the pound in currency trading. Sovereign debt continues to be a worry in Britain. And, even though that doesn’t seem to be a big issue at the moment, it could become a problem later.

For now, though, it appears that there is still some upside left for the sterling, and that should help the pound retain its gains against the U.S. dollar.

See Also

• U.K. Pound in Currency Trading
  Forex trading forecast

Euro Gains in Forex Trading, Even with Sovereign Debt Concerns

Currency trading with the euro

The euro is heading higher in forex trading on the currency market today. Even though there was a bit of a hiccup earlier, causing the euro to falter against the U.S. dollar, the 16-nation currency is higher again.

Euro has been struggling a bit, thanks to sovereign debt concerns. Indeed, euro zone countries have been causing worry with regard to their large debt loads. However, it appears that the focus is back on U.S. debt, and the pressure that is putting on the U.S. dollar.

As long as focus shifts away from the euro zone countries battling debt, it is likely that we will continue to see the euro gaining the upper hand in forex trading against the U.S. dollar.

See Also

• Euro in Forex Trading
  Forex trading on the currency market

Asia Session – September 28, 2010 1:42 AM

The US Dollar showed some signs of life today, a rare instance for the currency in Asian trade as of late. In another sleep inducing session, the dollar gained a bit of ground due to a mix of weaker equities, risk aversion, and news that the FOMC may explore a tamer version of last year’s bond purchasing program. The EUR/USD began the session softer and proceeded to session lows of 1.3425 before a turnaround. The firmer dollar theme remained sound across other pairs as well with GBP/USD dipping to 1.5800, and the ever-perky AUD/USD slipping to 0.9585. Full text »

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New York Session – September 27, 2010 4:03 PM

The dollar was mixed as the currency markets have been relatively quiet today with a lack of significant market moving data. Secondary economic data such as the Chicago Fed National Activity index and Dallas Fed Manufacturing index with minimal response. The Chicago Fed National Activity index dropped by more than the anticipated -0.50 falling to -0.53 from the prior -0.11 (revised down from 0.0) and the Dallas Fed Manufacturing index printed a disappointing -17.7 while the market was expecting a rise to -6.0 from the prior month’s -13.5. EUR/USD failed above 1.3500 as this level proves to be a significant hurdle amid concerns over the health of Europe’s troubled banking sector. Full text »

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London Session – September 27, 2010 7:11 AM

Stocks have had a strong start to the week in both Asia and Europe and bond yields are lower as markets continue to be cheered by last week’s Fed meeting. If stocks can maintain this rally, they are on track to register the best performance in the month of September – typically a bad month for equities ­- for a decade. Full text »

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U.K. Pound Moves Higher in Forex Trading

Sterling in currency trading

The U.K. pound is moving higher in forex trading on the currency market against the U.S. dollar. Indeed, every major currency, from the euro to the yen, is higher against the greenback in currency trading today.

Earlier, there was some hesitation for the sterling in currency trading, but that is largely overcome for now as the U.K. pound eyes the next level. 

With equities trying to pull ahead, and commodities doing well enough, it is no surprise that the U.S. dollar is weakening in forex trading.

See Also

• Sterling in Currency Trading
  Forex trading on the currency market

Is More Stimulus Coming for Japan?

Yen continues to gain in forex trading

The Japanese yen continues to gain in currency trading on the FX market — no matter what the Japanese do in terms of intervention. Indeed, the yen is higher in forex trading against the U.S. dollar today, in spite of recent efforts to change course.

A strengthening yen has been causing problems in Japan’s economy, and there are concerns that more economic stimulus could be needed. With a higher yen, Japanese exports are not as popular as in the past, and this is taking its toll.

The Japanese are, apparently, not as concerned about sovereign debt issues as Europeans, and willing to do what it takes to stimulate the economy while forcing a weaker currency.

See Also

• Yen in Forex Trading
  Currency trading on the FX market

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