London Session – September 30, 2011 9:09 AM

September 30, 2011

China growth fears add to sovereign concerns Full text » | Technorati | Stumble It!

Gold Prices Rise on Safe Haven Demand

September 30, 2011

U.S. dollar higher in forex trading on safe haven demand as well

Gold prices are rising on safe haven demand, gaining as global economic uncertainty sends the financial markets reeling. Gold is moving in tandem with the U.S. dollar as forex traders look for ways to invest safely.

Indeed, the U.S. dollar is up against all major currencies, gaining ground as equity markets fall and as worries about Chinese growth and European sovereign debt threaten the global economy. The U.S. economy is not helping matters, either.

For now, it looks as though gold prices might rally, and that the U.S. dollar will move with them. As long as there is demand for safe haven, gold is likely to shine.

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Euro Heads Lower in Forex Trading

September 30, 2011

U.S. dollar higher on safe haven demand

The euro is heading lower in forex trading on the currency market today, losing ground as global economic fears take hold. News that China’s growth is slowing has not been very encouraging, and some think that China might be the next sovereign debt problem.

As a result of these fears, global markets have headed lower, and safe haven demand is high. The U.S. dollar is higher on safe haven demand, gaining in forex trading as the euro heads lower.

Indeed, the euro is struggling quite a bit, with the news of recapitalization by Spain’s banks, and with the continued difficulty over sovereign debt — especially in Greece where protestors continue to slow the workings of government. So, for now, it looks as though the euro will remain lower in forex trading. 

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Asia Session – September 30, 2011 1:53 AM

September 30, 2011

The usual Friday sell off of risk in Asia was accelerated today by the ratings downgrade of New Zealand. Earlier in the New York session the Fitch ratings agency downgraded New Zealand debt and helped drop the NZD/USD from 0.7770 to eventual lows near 0.7650. As the day in Asia got underway, the S&P ratings agency also announced a downgrade of New Zealand, but this time the impact on the currency was less severe, and the NZD/USD dropped back down near April lows of 0.7634. The downgrade helped to put a risk off pallor over the session, and the dollar and yen made subsequent gains due to this. Full text » | Technorati | Stumble It!

New York Session – September 29, 2011 4:06 PM

September 29, 2011

The US dollar was broadly mixed with gains against the JPY and commodity currencies AUD, NZD, and CAD while declining against the EUR, GBP, CHF and Scandies. Trading was choppy despite positive US economic data flow with GDP, labor and housing releases. The EUR firmed as the EFSF vote by Germany is now behind us and the focus may soon shift towards monetary policy and Trichet’s last ECB meeting next week. EUR/USD traded as high as nearly 1.3680 earlier in the session but has since moved lower to current levels of around 1.3590 and is currently up about +0.35% on the day. Full text » | Technorati | Stumble It!

U.K. Pound Shows Spunk in Forex Trading

September 29, 2011

Sterling heads higher in currency trading

The U.K. pound is heading higher in forex trading on the currency market, gaining ground on the latest good news from around the world.

Concerns about the sovereign debt crisis in the euro zone are being assuaged, somewhat, by Germany’s vote to support the bailout fund. And, in the U.S., economic data has provided a pleasant surprise to the upside with jobless claims falling to their lowest level in months.

All of this is providing support for the sterling in currency trading on the FX market. A rally is going on, although some are uncertain about how long it will last. 

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What’s Next fort he U.S. Economy?

September 29, 2011

Data surprises to the upside and U.S. dollar heads lower

Everyone is interested in what might be next for the U.S. dollar, and for other currencies. With the latest U.S. data surprise, though, it might be that risk appetite is returning to the currency market.

U.S. jobless claims surprised everyone by dropping to the lowest level in six months. Additionally, the news that Germany voted to support the euro zone bailout fund is providing plenty of help to risk appetite as well.

As a result, the U.S. dollar is lower in forex trading as high beta currencies head a little bit higher. What happens next, though, is anyone’s guess. Everything has been so volatile lately that no one is sure what the U.S. dollar forex trading forecast holds. 

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London Session – September 29, 2011 7:27 AM

September 29, 2011

Germany votes yes but the euro’s reaction is muted Full text » | Technorati | Stumble It!

Asia Session – September 29, 2011 1:49 AM

September 29, 2011

Risk currencies saw a continuation of the descent that began in the New York session, with the brakes finally stopping the slide in late morning. The EUR/USD, which saw highs of 1.3690 less than twenty four hours ago, touched lows just under 1.3520 before risk made a massive u turn that tried valiantly to recoup those earlier losses. In thinned markets ahead of the much heralded German parliament vote for the potential expansion of the European Financial Stability Facility, traders began to buy risk currencies at bargain prices as it seemed that the EFSF expansion will surely pass the parliamentary voting. This change in risk appetite pushed the EUR/USD back near 1.3630 in a short squeeze that was felt across the majors. Full text » | Technorati | Stumble It!

New York Session – September 28, 2011 4:15 PM

September 28, 2011

The U.S. dollar reversed earlier losses and firmed against all of the G10 except against the JPY as traders shifted back into safe havens. The relief rally was unable to extend gains in risky assets as equities declined and the high beta currencies NZD, AUD, and CAD were the worst performers against the greenback today. Markets took risk off the table and remained cautious ahead of key events tomorrow which include the release of the U.S. 2Q final GDP as well as the German vote on EFSF enhancements. Full text » | Technorati | Stumble It!

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