Could the Facebook IPO Boost the US Dollar in Forex Trading?

January 31, 2012

Dollar outlook could improve by dollar assets and employment from Facebook

The Facebook IPO is fast approaching, and it is expected to be one of the biggest offerings in history. The Facebook IPO has been expected for years now, and many are expecting great things.

One of those things, some think, is a boost for the US dollar. With the US dollar held back by a lack of demand for dollar denominated assets, as well as held back by employment concerns, the Facebook IPO may be just what is needed.

The Facebook IPO is expected to result in jobs, hopefully boosting the US economy. Additionally, dollars will be in demand as investors scramble to invest in Facebook, which will be a dollar-denominated asset.

How long a Facebook related boost to the US dollar would last is, of course, up for debate. But some feel that the US dollar forex trading forecast is about to become much more interesting. 

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Canadian Dollar Drops after Disappointing Canadian GDP News

January 31, 2012

Loonie in currency trading

Canadian dollar dropped in forex trading on the currency market after the report of Canada’s 4th quarter GDP from 2011 came in. The GDP unexpectedly dropped by 0.1%, and that has prompted the loonie to head lower against the greenback in currency trading.

Loonie has been showing plenty of strength, maintaining its place near parity with the US dollar, for the years since the 2008 financial crisis. Indeed, the Canadian dollar has become quite solid in forex trading.

This small setback is almost erased by now, though. With risk appetite returning to the markets, and with oil prices back up above $100 a barrel, the loonie is doing better and paring its losses, ready to make some headway moving forward. 

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Home Prices Decline in the United States

January 31, 2012

US dollar lower today in forex trading

Home prices declined, yet again, in November of 2011. The Case-Shiller report shows that November was a disappointing month for home prices, with a decline to lows very close to the low seen in March 2011.

The news isn’t doing too much to hamper risk appetite right now. Investors and forex traders are instead focusing on a new fiscal treaty for the European Union, as well as improved earnings for a number of US companies. The result is that the US dollar is lower in forex trading as risk appetite makes its appearance.

For now, the home prices data has been shoved to the back burner. However, things could easily change going forward. The total economic picture is fairly shaky right now in the United States, and that could mean some changes in the way forex traders perceive things. 

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New York Session – January 31, 2012 4:13 PM

January 31, 2012

The dollar is trading mixed and risk sentiment fell off the highs seen early in the session after weaker than expected U.S. economic data and renewed concerns about Greece. There has been a lack of positive news on Greek PSI despite officials having continually expressed their optimism on the progress of the debt talks and their expectations that a deal will be reached soon. Greek Finance Minister Venizelos warned that time is of the essence and that the Greek Parliament needs to vote on the debt swap terms by February 13. He also noted that private sector creditors could take a loss of more than 70% of the NPV of their bonds. The euro was under pressure and traded lower against most of the majors with EUR/USD tumbling to session lows around the 200-hour sma. Full text » | Technorati | Stumble It!

Euro Heads Lower in Forex Trading

January 30, 2012

17-nation currency drops on forex market

Euro is heading lower in forex trading as risk appetite flees and focus returns to Greece. Once again, it has become clear that the leaders of the eurozone lack the will or the ability to come to an agreement to save Greece.

As a result, the euro is, once again, retreating. Optimism about Greece is fading and that means the euro is dropping on the forex market.

Concerns about the US economy are also adding the risk averse environment. The latest news about consumer spending is disappointing — especially since the latest news is about December. Personal income in the US increased, but spending decreased, and that might indicate that consumers are not ready to spend and boost the economy.

As a result, risk appetite has fled and the US dollar is in high demand. The euro won’t be able to gain the upper hand until something is agreed upon for Greece, and the forex market has something to count on for the future. 

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Risk Aversion Returns to the Forex Market

January 30, 2012

Euro lower in forex trading

Risk aversion is returning to the forex market today, increasing as worries about Greece and the eurozone take center stage. Last week, the euro saw some solid gains in forex trading, but this week some of those gains are being lost.

A meeting of European leader in Brussels is not expected to provide much hope, and that means that concerns about what’s next for the eurozone is a matter of speculation. The result is a lower euro in forex trading as uncertainty sets in.

US dollar index is on the rise with the news, and it will be interesting to see what happens next. As long as doubt remains about Europe, it will be difficult for the euro to see sustained gains in forex trading against the US dollar. 

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New York Session – January 30, 2012 4:49 PM

January 30, 2012

The greenback is broadly higher as risk sentiment declined amid EU debt concerns and weak U.S. personal spending figures. The USD is firmer against all of its G10 counterparts except the Japanese yen which is outperforming as a haven. USD/JPY fell to lows that have not been seen since the Bank of Japan last intervened on October 31. Full text » | Technorati | Stumble It!

Asia Session – January 30, 2012 1:33 AM

January 30, 2012

Greece remains the focus of investor sentiment, but a new potential headwind to more bail-out funds has been thrown into the mix. Over the weekend, the Financial Times sparked a flurry of chatter when it reported that the EU could be pushing to gain power to veto and change Greek budgets going forward. The news was met with stiff opposition in Athens, understandably so, with Greeceā€™s Finance Minister Venizelos saying that the plan would force his country to choose between financial assistance and national dignity. Full text » | Technorati | Stumble It!

Canadian Dollar Higher in Forex Trading

January 27, 2012

Loonie slightly higher in currency trading

The Canadian dollar is slightly higher in forex trading, moving a little bit higher on the strength of a weaker US dollar. The loonie is gaining as US dollar sinks under its bad news.

Additionally, loonie is being supported by oil prices right now. Oil prices are a little bit higher, and that is helping the Canadian dollar hold its gains — even though risk aversion is setting in and would normally lead to losses for the loonie.

For now, though, Canadian dollar is just managing to hold its gains. It will be interesting to see how long it lasts. Poor economic data in the US, and renewed worries about Greece are likely to result in risk aversion soon. 

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US Dollar Heads Lower in Forex Trading

January 27, 2012

Greenback pressured in currency trading

US dollar is lower in forex trading, heading down as concerns about the economy once again take center stage. Greenback is lower in currency trading, pressured as concerns about GDP and jobless claims take precedence.

Indeed, worries about US GDP are rising, and jobless claims are rising as well. This is in contrast with recent data out of the eurozone that has been better than expected. Eurozone data has beat expectations, and that is helping the euro — even though there are still issues related to Greek debt.

For now, the dollar index is losing ground, but the situation is still volatile, and the story could change quickly. It will be interesting to see what happens next, and what news shapes the forex market going forward.

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