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

August 31, 2011

The greenback was broadly mixed amid several economic data releases in the NY session. The Swiss franc was the strongest performer, up about +1.79% against the buck at time of writing as officials appeared to downplay policy response with regards to the exchange rate. Swiss Economy Minister Schneider-Ammann spoke today and said that though companies’ competitiveness has suffered ‘we’ll have to live with a strong franc for some time’. He also noted that expectations for government action were overblown. Full text »

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U.S. Dollar Steady in Forex Trading

August 31, 2011

Greenback in currency trading

So far, the U.S. dollar is holding steady today in forex trading on the currency market. Greenback is higher in currency trading against the euro, and other safe haven currencies, like the Swiss franc and the Japanese yen, are lower against the greenback.

The U.S. dollar forex trading forecast might be different, though, depending on what happens next. GFT’s Kathy Lien points out in FX360 that the upcoming employment report is likely to affect the future of the U.S. dollar:

Although ADP and NFP was fairly close last month, in the July release, it was off by 139k.  QE3 hinges upon Friday’s report and if non-farm payrolls rise by less than 75k, the Fed could pull the trigger on more stimulus in September. 

Some believe that the U.S. dollar is still undervalued, considering the fact that there are such troubles in the euro zone. If this is the case, even rising gold prices won’t be able to keep the greenback down in currency trading if forex traders recognize the value.

See Also

London Session – August 31, 2011 6:37 AM

August 31, 2011

All eyes on US jobs data Full text »

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Asia Session – August 31, 2011 1:38 AM

August 31, 2011

The slow week in Asia continued today with yet another session of tight ranges as the dollar saw nominal losses. While the range in the EUR/USD was a bit larger than yesterday, the dynamic moves of weeks past seem like years ago in light of this week’s muted moves. The EUR/USD stuck to a slow moving range between 1.4415 and 1.4445 for the day after earlier moves in New York took the single European unit on a one way trip lower from 1.4530. News of the potential for a “QEIII” from the FOMC meeting minutes helped to tarnish the glimmer of risk prior to the Asian session. Full text »

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New York Session – August 30, 2011 4:01 PM

August 30, 2011

The U.S. dollar was mostly firmer against its major counterparts amid Fed speak and the release of the Aug. 9 FOMC Meeting minutes which provided more insight into the discussion on further support measures. NZD, AUD, and JPY outperformed the dollar while EUR, CHF, and GBP were weaker against the buck. Economic released data included the S&P/Case-Shiller HPI which fell -4.52% y/y in June from the prior -4.59% drop. The Conference Board consumer confidence fell to its lowest level since April 2009 with a sharper than expected decline to 44.5 from the prior 59.2 (cons. 52.0). Much of the decline in the headline number was due to the plunge in the expectations index which fell from 74.9 to 51.9. Full text »

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Euro Down Again in Forex Trading

August 30, 2011

17-nation currency retreats against the U.S. dollar

Yesterday, general risk appetite helped a number of high beta currencies on the FX market. Today, though, risk appears to have fled, and forex traders are looking for a little safety.

As a result, the euro is down again in forex trading. Yesterday, forex traders overlooked some of the continuing problems for the euro zone, focusing on the Greek bank merger and looking at better than expected data in the U.S.

Today, though, much of yesterday’s optimism is gone. Focus is back on euro zone problems, and worries about the U.S. economy are also taking their toll. The U.S. dollar is higher against high beta currencies in forex trading, and gold prices are seeing solid gains again. It will be interesting to see what tomorrow brings. 

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Aussie Retreats in Forex Trading

August 30, 2011

Australian dollar in currency trading

Yesterday, the Australian dollar saw rather large gains in currency trading on the FX market, moving to highs not seen in a month. The stock market rally in the U.S. and Europe, along with an increase in risk appetite, led to solid gains for the Aussie.

Today, though, the story is a little bit different. The Aussie is lower in forex trading as global equities take a tumble. U.S. stock futures are poised for a higher open, and even rising gold prices aren’t helping the Down Under currency right now.

However, long term the Australian dollar is expected to be a reasonably good bet. The Aussie is supported by strong fundamentals, and the interest rate differential is just too tempting to forex traders

See Also

London Session – August 30, 2011 6:58 AM

August 30, 2011

LONDON SESSION: European problems get more complicated Full text »

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Asia Session – August 30, 2011 1:40 AM

August 30, 2011

Asia was once again victim to very quiet currency markets today with the EUR/USD trapped in a range of about 20 pips. The EUR/USD remained capped at 1.4525 here in what was sideways trading in Asia, but well within striking distance of recent highs near 1.4550. While the past weeks gloom and doom out of the Euro Zone seems to be forgotten, the grim reality that instability in the debt markets remains may well keep the cap on recent moves in the single currency. Full text »

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New York Session – August 29, 2011 5:47 PM

August 29, 2011

Remnants of economic optimism carried over from Bernanke’s Jackson Hole speech last Friday helping U.S. equities extend gains as the new week kicked off. Hurricane Irene’s downgrade to tropical storm status and its positive damage cost implications also played a role in supporting risk sentiments. Safe havens were shed across asset classes – UST 10-yr yields ended +3.23% higher on the day, gold lost more than -2% to $1787/oz., and CHF remained well offered to current levels around 1.1834 and 0.8150 versus EUR and USD, respectively.   Full text »

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