Euro Maintains Strength in Forex Trading
March 29, 2011
Currency trading with EUR/USD
The euro is maintaining its strength in forex trading on the currency market. Indeed, this strength continues even after the recent downgrade of Portugal. It seems as thought sovereign debt problems are no longer weighing on the euro in forex trading.
Even after the German consumer confidence report dropped, the euro has not been affected. However, perhaps the support for the euro is coming from the fact that economic activity continues to grow, with inflation on the rise. As a result, many forex traders still expect the ECB to raise rates sooner rather than later.
Also helping the euro is likely the fact that U.S. dollar continues to struggle. The U.S. economy is not doing well, with the housing market continuing to show problems, and with concerns about U.S. sovereign debt mounting. It could be that recent euro strength is more about U.S. dollar weakness than it is about euro zone strength.
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- Economic Nes and Currency Trading
Forex trading news
Portugal Downgraded — Again
March 29, 2011
Euro continues to gain in currency trading
Portugal has been downgraded again, for the second time in less than a week. Now, Portugal is just one step above junk status. Portugal’s latest downgrade comes as the financial situation in the euro zone continues to deteriorate, as well as after the Portuguese parliament rejected austerity measures.
The Street points out that ratings agencies are likely behind the times with most euro zone sovereign debt. The publication points out that something similar happened almost 15 years ago in Asia. Here is what The Street predicts for the future:
As such, we predict more flailing and more downgrades ahead. The FX market has become largely immune to the downgrades, with the euro hardly reacting at all to recent downgrade news.
Indeed, this seems expected, so the euro is not seeing negative effects from this move. The euro continues to gain, with the U.S. dollar instead sinking on concerns about yet another stall in the economic recovery.
See Also
- Euro in Forex Trading
Currency trading on the FX market
London Session – March 29, 2011 6:29 AM
March 29, 2011
Shift in tone from Fed officials keeps dollar volatile Full text »
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Asia Session – March 29, 2011 1:38 AM
March 29, 2011
Asia just saw a choppy session that was instigated by a myriad of news and end of year flows in the Yen by Japanese players. While risk saw a big drop early day, it was able to retake lost ground and most pairs look pretty much unchanged on the session. An early story that broke the news that high plutonium levels were observed in the soil surrounding the Fukashima nuclear plant helped to sink risk. Adding to the bad news out of Japan was a touch of bad news out of Europe as stories of Germany’s uncertain political future as well as the continued talk of Portugal’s supposed immanent need for a bailout added to risk aversion. Full text »
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New York Session – March 28, 2011 4:04 PM
March 28, 2011
The dollar traded was slightly weaker and the euro relatively firmer as hawkish rhetoric continued to flow out of the Euro zone. ECB President Trichet noted his concern about inflation rates which supported the euro as EUR/USD rose above 1.4100 earlier in the session and is currently around 1.4090. Dollar weakness supported commodity currencies with Canadian dollar strengthening and the Aussie hitting new post float highs of above 1.0300. Full text »
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Risk Appetite Improves on FX Market
March 28, 2011
Forex trading forecast
Risk appetite has improved on the FX market, meaning that we are likely to see high beta currencies find support moving forward. The forex trading forecast for currencies like the euro, pound and Aussie appear positive — at least for now.
The U.K. pound was lower earlier, but has since made some solid progress. The euro is moving higher as well, recovering from last week’s losses. Indeed, even the concerns about sovereign debt aren’t harming the euro today. And the Aussie is higher on general optimism.
With signs of a U.S. economic recovery once again making their appearance, it is clear that forex traders are feeling a little more comfortable looking for higher yields. However, it is possible that this state of affairs could no longer be in place.
See Also
- Currency Market Trends
Forex trading forecast for world currencies
Problems Continue with Sovereign Debt in the Euro Zone
March 28, 2011
Euro higher in forex trading anyway
Concerns about sovereign debt in the euro zone continue as problems mount. The European Union is not much closer to creating a real solution for taking care of sovereign debt. There are still concerns about bailing out some of the countries, and worries that some countries — like Portugal — won’t accept austerity measures in order to help get the budget back in shape.
Last week, these concerns led to a lower euro in forex trading. Today, though, these worries are not nearly as harmful to the euro. Things have changed a bit. Worries about the economy have been somewhat reduced, thanks to improvements in the U.S. economy.
Additionally, there is some risk appetite as issues in the Middle East appear ready to calm down a little bit, and as Japan begins its recovery. With a little more optimism, the euro is getting a boost, and forex traders aren’t focusing so much on sovereign debt.
See Also
- Euro in Forex Trading
Currency news for forex traders
Trading Block
March 28, 2011
A check on markets, currencies and commodities, with Peter Beutel, Cameron Hanover; Boris Schlossberg, GFT and, Larry Levin, TradingAdvantage.com.
London Session – March 28, 2011 6:49 AM
March 28, 2011
Europe’s troubles yet to be solved Full text »
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Asia Session – March 28, 2011 1:05 AM
March 28, 2011
The new trade week began poorly for the European currency which saw early losses due to German Chancellor Angela Merkel and her party losing steeply in region German elections. Merkel’s Christian Democratic Union party saw decisive losses in local elections which helped to end the party’s 58 year reign, helping to deflate recent EUR/USD gains. The pair saw a gap open lower by over 40 pips near 1.4040, and from there further losses brought the pair to session lows near 1.4020. But the bad news for the Euro didn’t end there as a cacophony news surfaced that was damaging to the single European currency. Among the surfacing stories that weighed on the Euro was talk that Ireland may need more EU loans to help firm up troubled banks, as well as comments that Greece may not be able to repay current debts to the EU/IMF. The cocktail of stories helped to keep risk soft and the yen and the US Dollar firmer for the beginning of the day. Full text »
