New York Session – May 31, 2011 4:03 PM

May 31, 2011

The dollar was weaker amid disappointing U.S. economic data and the euro rose on prospects of additional aid to the troubled nation of Greece. EUR/USD rose to current levels of around 1.4390 on reports of a potential new aid package for Greece and as inflation data remained well above the ECB mandate level with the overnight release of EZ CPI (2.7% y/y from the prior 2.8%). The South African rand also strengthened significantly following stronger GDP figures as well as M&A activity. USD/ZAR fell to current levels of nearly 6.8100 on a stronger rand. Full text »

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Cable Drops in Forex Trading

May 31, 2011

Sterling lower in currency trading

The cable has dropped in forex trading, heading lower on the currency market as U.S. stocks pull back. The sterling had been higher in currency trading, but the loss of support for equities after the release of U.S. economic data helped push the U.K. pound lower.

Consumer sentiment dropped in May in the U.S., and home prices data is still disappointing. Additionally, the labor market remains sluggish. With this economic data combined with a mounting budget deficit, there isn’t a whole lot of hope for investors, who dislike uncertainty.

Since the U.K. pound’s performance in forex trading often mirrors equities, it is little surprise that the sterling is dropping. The U.S. dollar is mostly higher today, with the main exception being against the euro, which is getting a boost on the Greek bailout expectations, and help from higher commodities

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Cable Drops in Forex Trading

May 31, 2011

Sterling lower in currency trading

The cable has dropped in forex trading, heading lower on the currency market as U.S. stocks pull back. The sterling had been higher in currency trading, but the loss of support for equities after the release of U.S. economic data helped push the U.K. pound lower.

Consumer sentiment dropped in May in the U.S., and home prices data is still disappointing. Additionally, the labor market remains sluggish. With this economic data combined with a mounting budget deficit, there isn’t a whole lot of hope for investors, who dislike uncertainty.

Since the U.K. pound’s performance in forex trading often mirrors equities, it is little surprise that the sterling is dropping. The U.S. dollar is mostly higher today, with the main exception being against the euro, which is getting a boost on the Greek bailout expectations, and help from higher commodities

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London Session – May 31, 2011 6:14 AM

May 31, 2011

Germany caves in to demands to help Greece Full text »

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Asia Session – May 31, 2011 1:21 AM

May 31, 2011

The calm of the three day holiday weekend in the US and UK was broken as the Euro shot higher on reports that Germany is easing its resistance against a second bailout for Greece. A newspaper report stated that Germany would not pursue an early rescheduling of Greek debt as was earlier reported, thus pulling Euro bulls onto the playing field with a fury. The EUR/USD made a move from 1.4280 to highs near 1.4405, taking out numerous stops along the way. Risk flourished on the news, pulling the AUD/USD over 1.0755 on 70 pip gains and seeing the GBP/USD push from 1.6470 to 1.6545. End of moth flows also aided in the boost against the dollar. Full text »

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Canadian Economy Sees Better Growth in Quarter 1

May 30, 2011

Canadian dollar mostly rangebound ahead of interest rate announcement

The Canadian economy saw increased growth in Quarter 1, growing to 3.9%. Businesses helped spur the growth. Even though there was improvement in economic growth, though, the Canadian dollar dropped a little bit.

Economists had expected to see 4% growth for Canada in the first quarter of 2011, so the 3.9% growth was a little disappointing. The Canadian dollar pulled back against the U.S. dollar on the news — a move supported as the greenback gained across the board.

The drop was fairly small, though. Forex traders are waiting for tomorrow’s Bank of Canada announcement about interest rates. However, with the disappointing economic data, many expect that the central bank will keep matters as they are. 

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U.S. Dollar Forex Trading Forecast

May 30, 2011

What’s next for the greenback in currency trading?

Today, the U.S. dollar is a little bit higher in currency trading on the FX market. The euro opened a little higher today, but that was quickly overcome as concerns about Greek debt resurfaced, and due to light trading in general.

However, the U.S. dollar forex trading forecast may not be that great going forward. The U.S. dollar may be up across the board today, but that could easily change in the near future, since there are concerns about U.S. sovereign debt.

In the near term, some expect that the U.S. dollar will see success. There are more immediate worries in other areas of the world, and general uncertainty will give the greenback a boost in currency trading. How the dollar does long term is likely to be impacted by what happens next in the budget battle, and whether or not headway is made with the growing U.S. deficit.

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New York Session – May 30, 2011 11:31 AM

May 30, 2011

Euro dominates matters in a quiet session Full text »

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London Session – May 30, 2011 7:45 AM

May 30, 2011

Greek fiscal worries have limited effect on the euro  Full text »

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Asia Session – May 30, 2011 1:37 AM

May 30, 2011

With holidays ahead in the two major banking centers of  London and New York, the action in Asia remained tame with the Euro slipping off of last week’s highs due to the continued issues facing the EU over the faltering Greek state. The EUR/USD, which opened at highs near 1.4323, remained centered near 1.4290 for the better part of the session until a late drop off near 1.4270 just before the European session began. The lingering debt issues with Greece are now center stage with a bevy of comments and articles circulating throughout the markets today. First and foremost, the news that Greece had missed all of it’s previously agreed upon fiscal targets did not bode well for the single currency. Added to this is the possibility that the EU will look for outside intervention in the Greek economy capped by the news of a special EU meeting on Greece on June 6th and the recipe was right for a bearish Euro. However, after last week’s poor data in the US and lower bond yields topped with the possibility of rate hikes this year diminishing, and a weaker dollar kept the Euro braced from a large fall. Full text »

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