Happy New Year from GFT Forex!

December 31, 2010

Wishing you a prosperous New Year

It’s been an interesting year. The forex market has been quite volatile, with sometimes big changes.

We have seen ups and downs for the U.S. dollar (it is currently down), and we have seen a number of currencies, including the Canadian dollar and the Australian dollar, remain near parity with the greenback.

The euro zone has managed to hold together — for now. But there are plenty of challenges ahead for the euro. Hopefully, you will be in a position to profit from the changes we see around us.

Best wishes for a Happy New Year!

See Also

London Session – December 31, 2010 5:45 AM

December 31, 2010

2010 fades into 2011 Full text »

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Asia Session – December 31, 2010 1:31 AM

December 31, 2010

The last trading day of 2010 in Asia turned out to be a very quiet one with no real news or data and the US Dollar remaining hobbled against its counterparts. With Japan closed until Tuesday it seems that the New Year festivities may have begun early across Asia as the currency markets suffered from very thinned trading conditions due to lack of participation. Despite the stagnation of the markets, currencies were leaning against the dollar, with the EUR/USD moving about 25 pips to highs just over 1.3310 and GBP/USD reaching 1.5460 briefly. In the USD/JPY the holiday was clearly evident in the pairs 12 pip range for the session. Full text »

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New York Session – December 30, 2010 4:02 PM

December 30, 2010

Risk sentiment was given a boost by surprisingly positive U.S. economic data as the year comes to a close, sending the dollar lower. EUR/USD rose to session highs above 1.33, AUD/USD traded close to record highs of around 1.02, and NZD/USD advanced to around 0.7725 as the dollar softened amid positive data releases. U.S. weekly jobless claims fell below 400K to the lowest levels since July 2008 with a print today of 388K. This was much lower than the market forecasts and a drop of 34K from the prior week’s 422K indicating that the labor market is moving in the right direction. The Chicago Purchasing Manager survey for December came in much stronger than expected as well with a jump to 68.6 – the highest level in 22 years – beating forecasts of a drop to 61 from the prior reading of 62.5. In the housing market, November pending home sales unexpectedly rose by +3.5% MoM (cons. +0.8% prior 10.1%). The better than anticipated data led to a pickup in risk appetite that weighed on the dollar, however equity markets did not participate in the positive sentiment. Full text »

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Canadian Dollar Gains Against the U.S. Dollar

December 30, 2010

Loonie expected to see further gains in currency trading

The Canadian dollar is gaining against the U.S. dollar in currency trading on the FX market today. Loonie has been showing strength in currency trading since the financial crisis more than two years ago.

For now, it appears that the Canadian dollar is likely to retain a great deal of its strength in forex trading on the currency market. The Canadian economy never went into as bad a recession as the U.S. economy did, and the amount of sovereign debt in Canada is more manageable than what is in the U.S. The euro is also gaining against the greenback today.

Additionally, Canada is expected to have an advantage as the global economic recovery picks up steam: Canada’s resources, especially oil, are likely to see an increase in demand. While it is impossible to say what will happen next, it is probable that the Canadian dollar will remain in the neighborhood of parity for quite some time.

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Euro Strengthens in Forex Trading

December 30, 2010

Euro overcoming some struggles

The euro is strengthening against the U.S. dollar in forex trading on the currency market today. Helped along by a global economic recovery that seems to be speeding up (European retail sales figures are positive), and by a successful bond auction in the U.S., the euro is finding support right now.

However, so far today, most of the forex traders are waiting for more definitive information. U.S. economic data is expected later today, and that could change the story for the euro. So far, equities are pointing lower today, and that usually does not mean much support for the euro in forex trading.

Additionally, there are worries that continued concerns for the sovereign debt situation in Europe could put a damper on things for the euro. But for now, it appears that the euro is seeing some good strength.

See Also

London Session – December 30, 2010 7:23 AM

December 30, 2010

A bruising year-end for the Greenback Full text »

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Asia Session – December 30, 2010 1:36 AM

December 30, 2010

The dollar continued to wilt today in Asia after lower bond yields prompted traders to sell the US currency. A solid showing in a seven year US Treasury bond auction earlier today drove bond prices up and yields lower and sparked another round of dollar selling that saw an apex here in Asia amidst thinned holiday trading conditions. EUR/USD topped 1.3255 today to complete a 175 pip move higher over the past 24 hours. Other currencies followed, with the Aussie and Swiss franc hitting record highs against the beleaguered greenback. Full text »

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New York Session – December 29, 2010 4:02 PM

December 29, 2010

The dollar lost ground as U.S. treasury yields tumbled sending the greenback to record lows against the Australian dollar and near record lows against the Swiss franc. AUD/USD surged to new all time free-floating highs of around 1.0180 as yields on Australian 10-years rose and those of the U.S. equivalents dropped. The pair has traded at these levels in 1982 when the Australian dollar was pegged, however these are the highest levels seen since controls on the currency ended in 1983. Full text »

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Euro Continues to Struggle in Forex Trading

December 29, 2010

Forex trading forecast for the euro

Euro is resuming its struggles in forex trading on the currency market today. After seeing some slight gains yesterday as the U.S. dollar moved a bit lower, euro is once again weakening on concerns about the financial stability of euro zone countries.

Gold prices are giving up their recent (and small) gains, putting further pressure on the euro in forex trading. The U.S. dollar is gaining on a strange combination of slightly improving U.S. economic data and concerns about the future pace of the economic recovery.

Also of concern to the euro are the rumors that the euro zone could fall apart in 2011. The forex trading forecast for the euro is one that calls for caution with regard to the 16-nation currency. If the euro zone can hold together through this crisis, it is likely to emerge stronger. However, there is also the chance that the currency alliance completely falls to pieces if sovereign debt problems of member nations can’t be resolved.

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