U.K. Economy Shows Signs of Slowing
July 27, 2011
U.K. pound drops in currency trading
The U.K. pound is dropping in currency trading on the FX market today, thanks in large part to the fact that the economy is once again showing signs of slowing. Problems with inflation, even while economic growth remains sluggish, continue to provide a quandary for MPC members at the Bank of England.
Today, the sterling is lower in forex trading, following a trend by many high beta currencies. Yesterday, most currencies were higher against the U.S. dollar as the IMF urged U.S. lawmakers to come to an agreement on raising the debt ceiling.
There is a difference today, though. The U.S. dollar is higher in forex trading as most currencies head lower on their own worries. Euro is lower, thanks to concerns about Spain and Italy, and economic concerns weigh on the pound.
See Also
- U.K. Pound in Currency Trading
Currency trading on the FX market
London Session – July 27, 2011 5:51 AM
July 27, 2011
The two-speed global economy Full text »
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Asia Session – July 27, 2011 1:48 AM
July 27, 2011
The Asian session began with the US Dollar once again pinned to the mats due to the lack of any headway in today’s debt ceiling talks. As majors pushed to early session highs putting the EUR/USD to 1.4535 highs, and the GBP/USD over 1.6435, the overall tone remained subdued as many traders have decided to wait out the results of the US debt drama. In the mean time, many traders looked to the near term, and awaited the Australian CPI data which would represent the risk event of the session. Full text »
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New York Session – July 26, 2011 4:03 PM
July 26, 2011
The U.S. dollar continued to trade on the back foot, with the largest losses coming against the Scandies. SEK and NOK were firmer against the dollar by +1.49% and +1.27% respectively. The Swiss franc continued to advance in risk off trading as investors demanded safe havens. USD/CHF dropped to record lows of nearly 0.8000 and is currently trading around 0.8010. Debt negotiations continued in Washington with little progress which weighed on risk sentiment and on the greenback. Full text »
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Commodity Currencies Trade Higher than the U.S. Dollar
July 26, 2011
U.S. dollar sinks on debt ceiling differences
Commodity currencies are trading near highs against the U.S. dollar today as concerns about what’s next for the U.S. debt ceiling dominate financial markets.
Indeed, the Aussie, loonie and kiwi are all trading high against the U.S. dollar as investors turn to gold, oil and other commodities that generally do well when the U.S. dollar is lower. These commodity currencies receive support from higher commodity prices.
With a U.S. debt default becoming a possibility, many investors are bracing themselves for what could be next: Another global financial crisis and a possible U.S. dollar crash.
See Also
- U.S. Dollar in Forex Trading
Currency trading on the FX market
IMF Tries to Get U.S. to Overcome Debt Ceiling Differences
July 26, 2011
U.S. dollar down across the board in forex trading
The International Monetary Fund is encouraging U.S. politicians to overcome their differences and agree on a plan to raise the debt ceiling. However, pleas from the IMF are unlikely to do much in terms of changing things in the U.S.
One of the biggest issues revolves around how to tame the U.S. budget. While many Democrats want a combination of spending cuts and tax increases, most Republicans are dead set against tax increases of any kind, and standing firm. Some are against raising the debt ceiling altogether.
As the deadline approaches without compromise, many investors around the world are becoming nervous. The U.S. dollar is lower against the euro in forex trading as a result today — even with euro zone debt troubles. The world’s largest economy heading in to default could have disastrous consequences for the global economy, including the end of the U.S. dollar as a safe haven currency.
See Also
- U.S. Dollar in Forex Trading
Currency trading news
London Session – July 26, 2011 6:30 AM
July 26, 2011
Dollar takes the brunt of debt fears Full text »
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Asia Session – July 26, 2011 2:52 AM
July 26, 2011
It was a wild ride today in Asia as the Dollar continued to be on the receiving end of a beating due to the continued stalemate in debt ceiling talks in the US Government. While the markets were calm in anticipation of US President Obama’s televised press conference at 1:00GMT, the dollar landslide began as it became apparent during the speech that the disagreeing parties were still seemingly worlds apart at the bargaining table. The president’s speech and republican rebuttal at times sounded more like campaign rhetoric than two parties with the same goal in sight, prompting markets to dump dollars as the talking commenced. Full text »
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New York Session – July 25, 2011 4:04 PM
July 25, 2011
The dollar was broadly weaker and the Swiss franc surged to record levels against the buck as U.S. debt negotiations continued in Washington. USD/CHF fell to all-time lows of nearly 0.8020/25 as politicians seemingly lack progress and coordination with regards to debt talks. The political impasse weighed on risk sentiment and on the U.S. dollar, however the greenback managed to strengthen marginally against the British pound ahead of tomorrow’s 2Q U.K. GDP release. GBP/USD dropped to current levels of around 1.6295 as the pound was sold. Full text »
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Could the Canadian Dollar be the Next Forex Trading Safe Haven?
July 25, 2011
Loonie in currency trading
Some think that Canadian dollar could be the next forex trading safe haven. The loonie has long been seen as a commodity currency tied to oil prices. However, the image of the Canadian dollar is starting to evolve.
With U.S. deficits rising, and with uncertainty over what’s next in terms of the debt ceiling and a possible default, the U.S. dollar isn’t considered as safe as originally thought. For a time, some thought that the euro might supplant the dollar as a safe haven, but the sovereign debt problems riddling the euro zone have suppressed that line of thinking.
Now, it looks like the Canadian dollar could be ready to step in to fill the void. With the Canadian economy managing to avoid most of the worst of the recession, and with the sovereign debt of Canada relatively low compared with the U.S. and euro zone, some forex traders are seeing that it might make a nice change.
See Also
- Loonie in Currency Trading
Forex trading forecast
