U.K. Pound Gains against the U.S. Dollar in Currency Trading

Sterling higher in forex trading

The U.K. pound is gaining against the U.S. dollar in currency trading on the FX market today on expectations that the Bank of England will support the British economy. The BOE says that some flexibility in capital requirements for banks might be in order, and some members of the MPC are even suggesting that another round of quantitative easing might be required.

The efforts to help the British economy, as well as good news about euro zone stability, are helping the sterling move higher in forex trading. An improvement in the global equity situation is also supporting the pound.

However, the sterling is mixed today against the field of major currencies. While the U.K. pound is higher against the U.S. dollar and the Canadian dollar, it is lower against the euro and the yen.

See Also

• What’s Next for the U.K. Pound?
  Sterling in forex trading on the currency market

Euro Continues Recovery in Forex Trading

Euro gets boost on currency market

The euro is continuing to see a recovery in forex trading on the currency market today. Hopes for stability in the euro zone are rising, and European leaders are hastening to indicate that they believe the sovereign debt crisis will be resolved.

Also helping risk appetite on the currency market is the fact that matters in the U.S. appear to be improving. Capital goods demand grew, indicating that business investment is on the rise, and should help the economy.

All of this optimism — at least for now — is helping the euro in forex trading. U.S. dollar is lower as forex traders look for better yields, rather than insisting on safe haven. 

See Also

• Euro in Forex Trading
  Currency market news

London Session – September 28, 2011 7:30 AM

The euro shrugs off Europe’s problems Full text »

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Asia Session – September 28, 2011 1:55 AM

The trading session today in Asia was a quiet one, with little on the news or data fronts, currencies were content to spend the day consolidating. After a week of moves that helped to flush out a good deal of orders, the EUR/USD spent the day between yesterdays highs and lows, just near 1.3570 in a 50 pip range. No fresh news on the Euro debt crisis front kept moves rather orderly, with the overall tone one leaning to risk aversion. Full text »

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New York Session – September 27, 2011 4:03 PM

The dollar remained on the back foot as the risk rally continued with European stock markets closing sharply to the upside on optimism that EU officials can come to an agreement towards a solution for the region’s debt crisis. The German DAX closed higher by about +5.29% and France’s CAC 40 rose by an astounding +5.74%. The USD declined against all of the G10 currencies and most notably against the high beta currencies NZD and AUD as investors demanded risky assets. Full text »

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Are there Too Many Problems for the EFSF?

Euro rallies in forex trading on expectations for sovereign debt solution

The euro is rallying today, heading higher against the U.S. dollar and drawing support from higher gold prices. The main driver for risk today seems to be the assumption that, this time, European leaders are ready to take meaningful action to rein in the sovereign debt crisis.

However, there are still concerns about how this will be done. The EFSF seems to have run into continuing problems with expansion, with some countries insisting that it won’t be necessary. Talk of recapitalization for banks seems to be the current direction, since the EFSF is unlikely to see expansion anytime soon.

For now, though, forex traders seem sanguine that something will happen, and that is helping the euro against the U.S. dollar. Euro is gaining solidly, and the U.S. dollar seems to be losing ground against most major currencies. 

See Also

• Economic News and Forex Trading
  Euro, U.S. dollar in currency trading

Gold Prices Prepare for Recovery

U.S. dollar lower in forex trading

Gold prices appear to be readying for a recovery today, heading higher and looking for support. With risk appetite returning, and the U.S. dollar lower in forex trading, it might be just the time for gold prices to seize an advantage.

Gold is heading back toward the $1,660 level right now in commodities trading, gaining as U.S. stocks follow Asian and European equities higher. However, there is still a downside to gold, and things could change quickly.

For now, though, the same risk appetite that is helping gold is putting pressure on the U.S. dollar. Greenback is down in currency trading as forex traders look for higher yielding currencies on the expectation that Europe will finally get the debt crisis straightened out. 

See Also

• U.S. Dollar in Forex Trading
  Currency trading news for forex traders

London Session – September 27, 2011 7:57 AM

LONDON SESSION: EFSF runs into roadblocks Full text »

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Asia Session – September 27, 2011 1:32 AM

The single European currency was given a reprieve today as it led risk higher on the hopes that the Euro Zone will fortify its safety net by increasing the current European Financial Stability Facility, more commonly referred to as the ESFS. An ECB board member mentioned that the current 440 billion Euros in the ESFS could be parlayed into a greater amount by using it as collateral for a loan from the European Central Bank if needed. This helped ease recent fears of Greek default and contagion in the EU region and risk currencies were well bid due to this. All of this played out against the backdrop of a Greek parliamentary vote due later in the day that will look to enhance already rigid austerity measures with a higher level of property tax for the Greek people. While this vote will be unpopular with the taxpayers, it is a vital hurdle for the cash strapped nation to secure its next trance of bailout money from the EU and IMF. Full text »

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Euro Pulls Back in Forex Trading

17-nation currency on the FX market

The euro is pulling back again in forex trading on the currency market. The euro is down against the U.S. dollar again as concerns about the sovereign debt situation in the euro zone remain.

The most recent G20 meeting has provided some hope that matters will be resolved, but the euro remains stubbornly lower. Gold prices are also lower, and that might be encouraging the euro losses in forex trading.

It will be interesting to see what happens next. Markets have been volatile lately, and there doesn’t appear to be an end in site when it comes to currency market upheaval.

See Also

• Euro in Forex Trading
  Currency market news

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