U.S. Dollar Remains Lower in Currency Trading
May 27, 2011
Greenback down across the board in forex trading
Greenback is under pressure across the board today in forex trading on the currency market. U.S. dollar is lower in currency trading today as consumer sentiment comes in mixed. Some of the data was disappointing, and some better than expected. Additionally, home sales data from April was also disappointing.
The yen has recovered from the announcement that its debt outlook has been cut, and even the yen is improving over the U.S. dollar. Greenback is down against euro, Aussie and U.K. pound.
With deficit issues in the U.S., and concerns about a summer slowdown for the economy, it isn’t surprising that the greenback is having a bit of trouble in forex trading. Until some issues are resolved, things are likely to be choppy for the U.S. dollar.
See Also
- Economic News and the U.S. Dollar
Currencies and forex trading
Japanese Sovereign Debt Outlook Cut
May 27, 2011
Fitch cuts Japanese outlook; yen drops in currency trading
The Japanese yen moved lower in currency trading on the FX market today, thanks to a debt outlook cut by Fitch. The ratings agency cut the sovereign debt outlook for Japan from stable to negative. The news had the yen sinking against the greenback, but things have changed.
Since earlier, the yen has made a bit of a turnaround, coming back against the U.S. dollar. Higher gold prices are weakening the greenback across the board. On top of that, the U.S. dollar has been hit by mixed consumer data.
For now, the yen is recovering from its earlier losses in forex trading, and many expect that Japan will eventually recover from its devastating earthquakes earlier this year. The U.S. dollar might have a harder road.
See Also
- Yen in Currency Trading
World currencies in forex trading
London Session – May 27, 2011 6:20 AM
May 27, 2011
Can the euro close the week on a high note? Full text »
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Asia Session – May 27, 2011 1:35 AM
May 27, 2011
The Asian week ended with a burst of activity that sent the newly vulnerable US dollar against the ropes heading into the long US holiday weekend. Poor US data earlier in New York dragged down US treasury yields, dampening the greenback and setting the stage for the stop driven moves we saw today in Asia. The stop loss action during the day was violent at times, bringing the dollar to its knees and sending the EUR/USD rocketing almost 150 pips to 1.4275 highs. The moves in the Euro were equaled by the USD/CHF pair, which printed all time record lows near 0.8530 on a decline worth 130 pips. The Swiss Franc was aided by an IMF statement that the SNB should raise rates soon in order to stave off inflation. Many traders were caught up in the day’s action as they scrambled to square up positions ahead of the weekend that is capped off with the Memorial Day holiday on Monday in the US. Full text »
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New York Session – May 26, 2011 4:08 PM
May 26, 2011
The dollar was weaker amid disappointing U.S. economic data that pointed to softer economic growth. Safe haven currencies such as the yen and the franc were firmer with EUR/CHF reaching new record lows as the lack of coordination among European officials regarding the issue of Greece debt remained prevalent. EUR/CHF fell to lows of nearly 1.2200/05 despite reports that China will buy EFSF bonds to help bail out Portugal. There were also reports that China will invest up to 6B NZD into New Zealand which helped to boost the kiwi. NZD/USD outperformed gaining about 1.57% on the session to current levels of about 0.8105.
First quarter GDP growth in the U.S. disappointed market forecasts with the revision for q/q annualized GDP coming in at 1.8% (exp 2.2% prior 1.8%). Personal consumption was expected to be tick higher to about Full text »
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Risk Aversion Produces Gains for Swiss Franc and Japanese Yen
May 26, 2011
World currencies in forex trading
Risk aversion was the story earlier today, as the Japanese yen and Swiss franc logged gains in forex trading. These two currencies are considered safe and stable, and with concerns about euro zone debt (fears were stoked again by Jean-Claude Juncker), and other problems, it is little surprise that the yen and franc are on the rise.
Even the U.S. dollar was gaining against the euro in currency trading. However, the greenback is down against the euro as disappointing economic data is released. Risk aversion still remains, but it is an aversion that favors other currencies over an increasingly risky dollar.
The yen and the franc are still seeing success, though. The yen is up against the U.S. dollar, and the franc continues to show strength against the euro in forex trading. For now, these are the currencies seen as providing the best safety and stability in an uncertain economic environment.
See Also
- Economic News and Currency Trading
World currencies in forex trading
Euro Inches Back Up After Dropping on Juncker Comments
May 26, 2011
Euro in forex trading
Jean-Claude Juncker, Eurogroup leader, said earlier that the IMF may not send its portion of bailout funds to Greece next month, as agreed. Concerns about the growing difficulties in Greece, and concerns about what could next, sent the euro lower in forex trading.
However, the euro is gaining ground again against the U.S. dollar, thanks to some disappointing data. Initial unemployment claims rose in the U.S. last week, and GDP data for the first quarter wasn’t revised upward as expected. The news was disappointing, and that is causing some dollar weakness.
As a result, the euro is gaining in forex trading as focus shifts to the problems in the U.S. It will be interesting to see what happens next. EUR/USD has been quite volatile in currency trading lately as forex traders change focus, trying to decide which economic situation is worse.
See Also
- EUR/USD in Currency Trading
Forex trading on the currency market
London Session – May 26, 2011 6:01 AM
May 26, 2011
China comes to the rescue of the euro Full text »
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Asia Session – May 26, 2011 1:26 AM
May 26, 2011
The Euro was given a reprieve from the recent reign of the dollar as the currency shot to weekly highs amidst news and short covering. The embattled European currency was propelled through a stop driven move as reports surfaced that China was highly interested in buying Euro Zone “bailout bonds” linked to the recent Portuguese bailout. The EUR/USD was able to punch through the key 1.4150 level to reach just over 1.41700 to register a big figure gain before stalling out. The climate turned hungry for risk with Asian equities higher and the yen and dollar sliding. While the short squeeze damped the mood of dollar bulls, it will be interesting to see what kind of legs this move has with the yoke of Greece still hanging around the neck of the single European currency. Full text »
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New York Session – May 25, 2011 4:07 PM
May 25, 2011
The greenback was mixed against the majors, declining against the franc, pound, and kiwi but firmer against the yen, euro, Aussie, and Canadian dollar as the Greece debate continued and amid negative U.S. manufacturing and housing data. Minneapolis Fed President and FOMC voting member Kocherlakota spoke and indicated that he favors a 50 bps tightening this year. EUR/USD declined slightly to current levels of around 1.4080 and continues to trade above the psychological 1.4000 level and key 100-day SMA. Full text »
