Canadian Dollar Erases Earlier Losses to Continue Rally

April 29, 2011

Loonie in currency trading

The Canadian dollar has erased earlier losses, and is heading higher against the U.S. dollar in forex trading. The loonie is looking at multi-year highs in currency trading against the greenback.

Earlier, the Canadian dollar had retreated on disappointing economic news. Loonie tumbled as concerns about GDP took center stage. However, the losses were reversed — thanks to soaring commodity prices.

Loonie is a commodity currency, and gets support from higher commodity prices. The Canadian dollar is tied to oil prices, which are soaring right now. Oil company profits are higher, and the Canadian dollar is benefitting. 

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Aussie Could Continue to Soar

April 29, 2011

Aussie forex trading forecast

The Australian dollar is likely to continue its trend of strength in currency trading on the FX market. With the Chinese economy still heating up, and with gold prices heading ever higher, there is support for the Aussie in forex trading.

Additionally, Fed comments about the future of the U.S. dollar are encouraging forex traders to look for higher yields. The carry trade is quite popular right now as traders look to make money off the disparity between the Aussie interest rate and the rate in the U.S.

With dollar weakness likely to persist for the foreseeable future, high beta currencies are likely to do well, and the Aussie is likely to continue gaining. 

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London Session – April 29, 2011 7:51 AM

April 29, 2011

Euro-area inflation gives single currency a boost Full text »

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Asia Session – April 29, 2011 1:48 AM

April 29, 2011

With Japanese markets closed for the beginning of Golden Week and the UK out on holiday in honor of the royal wedding, markets had mostly a slow session of consolidation with only a small exception. The AUD/USD made an early day run at New York highs at 1.0940, but was repulsed at the valiant attempt. Meanwhile, equities in Australia’s S&P/ASX 200 posted early losses over 1% led by mining stocks which have been crippled by the ever increasing Aussie dollar, prompting a slide in the currency. AUD/USD hit some stops as it collapsed from 1.0930 to lows just near 1.0880 on the day. The pair did stage a later day recovery and stands near 1.0900 heading into the London session. AUD/JPY saw similar moves, dropping from 89.15 to 88.70 in a swoop, to only rally back near 88.90 by days end. Full text »

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New York Session – April 28, 2011 6:14 PM

April 28, 2011

The U.S. dollar managed to halt its rapid decline over the past few days, even in light of this morning’s poor U.S. 1Q GDP reading (1.8% vs. expected 2.0%). March U.S. Pending home sales turned sentiment round a bit coming in at 5.1% MoM versus a 1.5% consensus.  Price action in the majors were interesting – EUR/USD fell from around 1.4880 down towards 1.4770, USD/JPY traded within a 81.40-85 range, cable topped out at 1.6745 and finished near 1.6635, and the swissy bottomed ahead of 0.8680 and ended up closing at 0.8735. Silver was highly volatile once again, reaching $49.50 before an extremely sharp sell-off sent it down to $47.20/25 and then recovered to finish at $48.40. Full text »

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Japanese Yen Continues to See Weakness

April 28, 2011

Yen in currency trading

The Japanese yen continues to see weakness in currency trading on the FX market. Today, the yen is actually gaining against the U.S. dollar, but it is down against the euro, pound and Swiss franc.

The yen softened in March after the G7 intervened to help keep the currency from appreciation in the aftermath of the huge earthquake and tsunami that devastated part of the country.

Of course, Japan prefers the yen to be weak, and a weak currency can be an advantage in times like this. It makes Japanese good attractive, and helps stimulate economic growth. With the yen confirmed in weakness, it should help matters as Japan struggles to rebuild. 

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Euro Gains in Forex Trading as GDP News Hurts U.S. Dollar

April 28, 2011

EUR/USD continues rally

The EUR/USD currency pair continues to rally in forex trading as the latest GDP data comes in. U.S. economic growth in quarter one of 2011 was disappointing, and that is reflected in the way that forex traders are looking to other currencies right now.

For now, the euro is gaining in forex trading. Even though pending home sales gained some ground, the news wasn’t enough to overcome the disappointing GDP report and the renewed increase in jobless claims.

As a result the, euro is gaining in forex trading. Concerns about Europe’s own sovereign debt problems are being overshadowed by worries that the U.S. could see a debt crisis soon. With a burgeoning deficit and weak economic growth to support it, there are concerns about what’s next for the U.S. dollar. 

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Disappointing U.S. GDP Growth Hurts the U.S. Dollar

April 28, 2011

Greenback down across the board in currency trading

U.S. GDP data from the first quarter is in, and it is somewhat disappointing. Instead of seeing growth that indicates a true economic recovery, GDP increased only 1.8%, renewing fears that recent gains have been unsustainable.

The U.S. economy continues to struggle as disappointing news comes in. Jobless claims grew again, emphasizing difficulties in the labor market. Additionally, higher food and gas prices are hurting consumer confidence and encourage consumers to limit their spending.

As a result, the U.S. dollar is weak in forex trading against all the major currencies. The dollar is even down against the Japanese yen. With the state of the budget unclear, loose monetary policy continuing, and with the U.S. deficit continuing to rise without economic activity to offset the effects, the greenback is struggling in currency trading

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London Session – April 28, 2011 6:00 AM

April 28, 2011

The dollar slide continues Full text »

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Asia Session – April 28, 2011 1:49 AM

April 28, 2011

The US Dollar remained the victim once again in Asia after FOMC Chairman Bernanke failed to help boost morale for the greenback earlier in the day. With the US Federal Reserve Bank showing no signs of boosting interest rates anytime soon, the green light was given for investors to continue selling the listless greenback. With dollar bears out in full force the majors were simply on fire today. The AUD/USD blasted over 70 pips to fresh 29 year highs just over 1.0940. The persistence of this pair has been unbelievable and it’s almost hard to believe that it was resting near 0.6000 during the height of the financial crisis in 2008. While the Aussie was forging ahead, so did the EUR/USD and the GBP/USD. The EUR/USD saw 1.4880 highs after lows closer to 1.4630 prior to the FOMC statement. The GBP/USD pushed higher by a big figure to 1.6745 to post fresh 17 month highs in the pair. Simply put, almost anything paired against the dollar rose higher today. Full text »

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