Asia Session – October 31, 2011 10:27 PM

October 31, 2011

Markets keenly await the RBA’s decision Full text » | Technorati | Stumble It!

New York Session – October 31, 2011 4:02 PM

October 31, 2011

The dollar was firmer against all of the G10 currencies as risk aversion returned to the markets and as last week’s euphoria subsided. Italian 10-year yields continued to trade above the key 6.00% level and EUR/USD tumbled back below the 1.40 figure. GBP/USD was rejected from the 200-day simple moving average as the dollar gained on safe haven flows. With Japanese officials intervening in the FX markets to weaken the yen as confirmed by Finance Minister Azumi overnight, the buck has emerged as the safe haven of choice. We remain skeptical about the long term effectiveness of unilateral JPY intervention as previous efforts have had only a short-lived impact. In our view, today’s intervention must be followed up with another round to prove credible. Full text » | Technorati | Stumble It!

Bank of Japan Intervenes to Send Yen Lower

October 31, 2011

Japanese yen in forex trading

The Japanese yen is heading lower in forex trading on the currency market today, down as the Bank of Japan intervenes to halt a recent rise in the yen against its major counterparts.

As the yen weakens, the U.S. dollar is being used as the safe haven of choice. Yen is down against major currencies, and the U.S. dollar index is higher. The news is also sending gold prices and oil prices lower.

Risk aversion has set in, thanks to renewed concerns about the eurozone plan and what’s next for Italy. And, with the yen out as a safe haven right now, the dollar is all there is to turn to. Japan likes a weak yen, since it keeps the country’s exports competitive. With this latest intervention, Japan hopes to stem the tide of recent yen strength in forex trading. 

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U.S. Dollar Higher Against Other Currencies in Forex Trading

October 31, 2011

Risk aversion on the currency market

U.S. dollar is heading higher in forex trading as risk aversion sets in. Indeed, forex traders are looking for safe haven right now, and the U.S. dollar looks a likely candidate, especially since the Bank of Japan just announced its intervention to keep the yen weak. In that case, the yen is unsuitable as a safe haven, and the U.S. dollar is the currency of choice.

Right now, there are a number of concerns about what’s next for the global economy. China has been slowing down. But a more immediate concern is what’s happening in Europe. Last week’s plan announcement is no longer causing market euphoria. Quite the opposite: Skepticism is sending markets lower.

For now, this is is lending strength to the U.S. dollar in forex trading. Without a viable alternative as a safe haven (and gold isn’t being treated as a safe haven right now), all that’s left is the dollar — and that’s in high demand. 

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London Session – October 31, 2011 8:49 AM

October 31, 2011

London Session: MF Global: not too big to fail… Full text » | Technorati | Stumble It!

Asia Session – October 31, 2011 12:21 AM

October 30, 2011

With commentary being fairly muted over the weekend, investors in Asia appeared to be continuing the take profit attitude we witnessed on Friday. However, price action changed dramatically when the BOJ decided to intervene in the currency market. Before the BOJ made its move, USDJPY reached its lowest levels post-1945 at around 75.54. Following the intervention, USD/JPY blasted higher to around 79.11. We are awaiting the exact details of what the intervention was comprised of, but sharp Aussie and Euro downside seems to suggest that it may have consisted of large scaled USD buying. After opening slightly lower, EURUSD gained some traction and climbed above the weekend close before dropping down towards 1.4021 following reports of BOJ intervention. Full text » | Technorati | Stumble It!

Asia Session – October 30, 2011 11:36 PM

October 30, 2011

BOJ intervention Full text » | Technorati | Stumble It!

Euro Pulls Back in Forex Trading. What’s Next for Eurozone?

October 28, 2011

Euro forex trading forecast

Euro is pulling back in forex trading on the currency market today, moving lower as investors and others re-evaluate their enthusiasm for the sovereign debt plan announced yesterday.

Now that the initial euphoria is over, forex traders are looking into the details — or lack of details — regarding the plan. And what is being seen is not exactly providing comfort. The solution to the sovereign debt problem now seems somewhat inadequate, especially for the long term.

Today’s euro forex trading forecast calls for a little more caution on the part of forex traders — and weakness for the 17-nation currency. Euro is down pretty much across the board as traders look for a little safety.

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Canadian Dollar Turns Lower in Currency Trading

October 28, 2011

Forex trading with the loonie

Canadian dollar is heading lower in currency trading, after heading higher earlier. U.S. dollar’s bearish momentum seems to be disappearing as investors look for direction.

There are second thoughts about the plan presented by the eurozone to contain the sovereign debt that seems to be spiraling out of control. Yesterday, everyone seemed excited for the plan, but now it seems as though many are having second thoughts, concerned that it is only a temporary fix — and not a very good one at that.

For now, there is increased interest in the greenback, and that means that the loonie is pulling back some in forex trading

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Asia Session – October 28, 2011 1:58 AM

October 28, 2011

After the euphoria of an 11th hour deal to save Greece launched colossal moves higher overnight, Asia spent the day with markets consolidating and investors taking profits. The EUR/USD fell just shy of 1.4250 seven week highs in New York trading but slipped quietly into a range between 1.4160 and 1.4200 over the course of Asia. Yesterdays European Union plan to help save Greece from a certain default helped to spread optimism throughout the financial world, sparking a risk buying frenzy as traders were stopped out of short EUR/USD positions due to the over four big figure move higher. It remains to be seen how long the euphoria will last once the EU plan is scrutinized under a microscope. Full text » | Technorati | Stumble It!

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