Will the US Dollar Remain Strong in Forex Trading?
December 28, 2011
US dollar forex trading forecast
The US dollar has had a pretty good bull run in 2011. The dollar has strengthened as worries in the eurozone and concerns about the global economy have prompted an interest in safe haven.
Indeed, the greenback is higher today, with the dollar index rising, once again, as stocks drop and the future of the euro is called into question. Also, as more comes out about the state of China’s finances, the US dollar continues to look more like the stable currency of choice.
For now, US dollar is heading higher as the euro sinks below the 1.30 mark. The dollar index is gaining, and other majors are falling back as forex traders look for safety. But this state of affairs may not remain the same in 2012. If the eurozone recovers, and if China’s growth resumes, the US dollar is likely to fade out of the picture.
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- US Dollar Forex Forecast
Currency trading forecast
Could China Be on the Verge of Collapse?
December 27, 2011
What’s next for China?
There has been some discussion lately about whether or not China is on the verge of collapse. Some believe that China’s growth has been slowing to a point where it will bottom out and lead to problems.
Additionally, there is the problem that China itself has some loans on the books, and the toxic assets may overwhelm the burgeoning economic superpower.
According to some, the indications are that China is about ready to collapse. If China does collapse, it could send shockwaves through the global economy. The US might not be able, even with some of the improvements seen in the economy, to stave off another global crisis if China does go down.
For now, it’s mostly open to academic debate. But many are watching events for signs that China might be headed for trouble.
See Also
- Could China’s Economy be in Trouble?
What’s next for China and the world
Home Prices Continue to Fall in the US
December 27, 2011
US dollar mostly weaker today
Home prices continue to fall in the US, according to the Case Shiller Index. The news is putting a damper on some of the gains seen earlier today by stocks. The release of consumer confidence data gave markets a boost, and helped risk appetite, but now the situation is moderating a bit.
US dollar is still mostly weaker today, though. Greenback dropped earlier on better economic data as forex traders looked for better yields. A better economic situation reduces the need for the US dollar as a safe haven.
Now, though, there are concerns about how solid the economic recovery in the US will be. With the housing market still struggling, other currencies are paring their gains against the US dollar, and the greenback is finding a little more strength.
It will be an interesting day, and currencies should be carefully watched as a result. The situation could change quickly.
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- US Dollar in Forex Trading
Currency news for forex traders
Asia Session – December 27, 2011 1:43 AM
December 27, 2011
With markets still caught in holiday mode, the lack of action in the currency markets today was certainly not surprising. The week between Christmas and the New Year is traditionally a quiet one in currencies, with thinned liquidity and range bound trading as many traders have already packed it all in until they start fresh in the New Year. Today in Asia was a prime example as we saw a skittish AUD/USD slip from 1.0165 to lows under 1.0140 on no news in particular. Conversely, the EUR/USD spent the session on a slow crawl higher as the pair moved from 1.3045 to eventual highs that overtook the 1.3075 level. Full text »
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Euro Mostly Flat Against Majors Today
December 23, 2011
Euro in forex trading
The euro is mostly flat against other majors today, with forex traders in holiday mode. Euro is very slightly down against the US dollar, and is very slightly up against the UK pound today.
For the most part, forex traders are in a sort of wait and see situation. Austria has not been downgraded, but there are concerns that other eurozone countries might be. Growth in the region is still sluggish, and the debt crisis still hasn’t been truly resolved. After this week, it will be interesting to see what happens.
Right now, though, it is worth it to take a step back, and take a deep breath. Hopefully, you are enjoying the holiday season. So, leave worries about currencies for another day, and have a very Merry Christmas.
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- Euro in Forex Trading
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Asia Session – December 23, 2011 1:46 AM
December 23, 2011
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New York Session – December 22, 2011 4:00 PM
December 22, 2011
The U.S. dollar was mixed as was economic data and equity markets climbed higher. The buck was strongest against the NOK, softer against the commodity currencies and relatively flat against the EUR and GBP. Discussions in Washington continued surround the extension of the payroll tax cut with lawmakers getting closer to reaching a deal. Full text »
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What’s Next for the US Economy?
December 22, 2011
Is the economy finally ready to recover?
Today, the US dollar index is lower, and the high beta currencies are gaining. Much of this has to do with optimism regarding what could be next for the US economy.
Economic data today was mostly better than expected. Other than hiccups involving GDP, jobless claims were down more than expected. Additionally, consumer sentiment improved, raising hopes that spending would begin to help the economy.
Oil prices rose on the news that stockpiles declined, further pushing the idea that consumers are starting to spend more money. Gold prices dropped though, heading lower as the need for safe haven diminished.
See Also
- What’s Next for the US Dollar?
Forex trading trends
Euro Continues to Struggle Against the Pound
December 22, 2011
UK pound seen as a relative safe haven in Europe
The euro continues to struggle against the pound in forex trading, heading lower as traders prefer the British currency to the 17-nation euro. Indeed, with all of the troubles in the eurozone, many are beginning to see the pound as something of a safe haven in Europe.
It’s important to remember, though, that the pound has its own troubles. The British economy is still struggling somewhat, and the BOE is still trying to balance a need for growth with reining in higher than expected inflation.
Things could change if the eurozone leaders manage to find some sort of solution to the problem. However, for now the euro is likely to continue to have difficulties when compared with the pound.
See Also
- EUR/GBP in Forex Trading
Currency trading ideas
Asia Session – December 22, 2011 1:08 AM
December 22, 2011
Last night we witnessed 523 banks borrow a record EUR489 billion from the ECB, more than the general consensus of around EUR310 billion, and risk assets still lost ground to treasures, the dollar and other perceived safe havens. However, this is not surprising given that the market wants something that is going to reduce the cost of holding sovereign debt and we cannot see this recent round of ECB lending accomplishing this. Banks’ holdings of sovereign debt got them into trouble in the first place and with no solution to the European debt crisis in sight, why would they load up with more?
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