Jobless Claims Rise in the US
January 27, 2012
Greenback lower in currency trading
Jobless claims are higher in the US, rising sharply as concerns about the economy come to the fore. Jobless claims rose to 377,000 in the week ending January 21, 2012, and that is causing some concern.
Worries about the US economy, which include a slightly disappointing GDP figure from the fourth quarter of 2011, are once again sending the greenback lower in currency trading.
Indeed, US dollar is lower against the euro in forex trading, as well as against other currencies, including the pound and commodity currencies. The dollar index is lower, but things may change as the day progresses. Dollar has been hit, but this news also usually means a reduction in risk appetite. As a result, the greenback could soon turn around as Forex traders look for safe haven.
See Also
- Economic News and the US Dollar
Currency trading news and information
Asia Session – January 27, 2012 1:49 AM
January 27, 2012
The greenback ended broadly higher yesterday as ongoing Greek-PSI negotiations quickly overshadowed Fed QE 3 optimism. As markets in Asia opened shop, U.K. newswires cited an anonymous senior Greek official as saying progress was being made and aimed at concluding a deal with the private sector soon, and that talks were likely to continue on Friday and probably into the weekend as well. Seemed a bit contradictory to me and price action in currency markets suggests the market may not be buying in either as EUR/USD trades pretty much unchanged from this same time yesterday. Full text »
del.icio.us | Technorati | Stumble It!
New York Session – January 26, 2012 4:21 PM
January 26, 2012
Sentiment deteriorated as Greek debt talks continued with no new developments to announce and after softer U.S. labor and housing data. The IIF left markets with little information to digest other than that “some progress” was made in Athens today and that talks will resume tomorrow. The dollar started the session significantly lower and managed to regain some of its losses as traders took profit ahead of key technical levels. Despite a late day rebound, the US dollar remained softer against most of the majors. EUR/USD stalled ahead of the daily ichimoku cloud base and 38.2% Fibonacci retracement level (of the decline from Oct. highs to Jan. lows) which comes in above the 1.32 figure. The pair saw session highs of nearly 1.3180/85 before correcting lower to current levels of around 1.31. Full text »
del.icio.us | Technorati | Stumble It!
London Session – January 26, 2012 4:21 PM
January 26, 2012
The dollar continued to trade on the back foot as market sentiment was buoyed by a dovish Fed, successful Italian bond auctions and reports of progress on the PSI talks in Greece. Global equities are trading positively with the DAX currently up about +1.44% while U.S. stock futures are currently higher by about +0.35%. U.S. Treasury yields are under pressure with the 5-yr yields just above record lows made yesterday after the Fed extended its pledge to keep rates low until late 2014. In Europe, Italy sold its maximum target of 5b euros at an auction of zero-coupon and inflation-linked bonds. Italian borrowing costs fell with the 10-yr yield currently lower by about 13bps to 6.10%. Sovereign yields spreads for most of Europe also eased with the exception of Portugal. Full text »
del.icio.us | Technorati | Stumble It!
UK Pound Lower Against Euro in Forex Trading
January 26, 2012
Sterling drops against 17-nation currency
UK pound is lower against the euro in forex trading today, dropping as concerns about the British economy acquire prominence. The British economy, which appears to be struggling, stands in contrast to the eurozone economy, led by a Germany that appears to be seeing improvement.
Euro is also higher in general as commodities and other risk assets rise on the latest from the US Federal Reserve. With so much risk sentiment, euro is doing well indeed. And with so much confusion over the British economy, it is now surprise that the sterling is lower.
For now, EUR/GBP is gaining. However, Greek debt worries could change things around again, sending the euro lower against the pound in forex trading. It will be interesting to see what happens next.
See Also
- Sterling in Forex Trading
Currency market news
Russia Announces the Aussie as a Reserve Currency
January 26, 2012
Aussie gains in currency trading
The Aussie is rising today, thanks to newfound popularity with the Russians. The Russian central bank deputy minister announced that the Australian dollar will be used as a reserve currency going forward.
Indeed, Russian announced that the Aussie will begin being used as a reserve currency possibly in February. This news has provided a boost to the popularity of the Australian dollar in forex trading, since there will be increased demand.
Also helping the Aussie today is the rise in gold prices. Aussie relies on gold prices for support, and the surge in gold right now is positive for the Australian dollar. It is little surprise that the Aussie is doing so well in currency trading on the FX market today.
See Also
- Economic News and Forex Trading
Currency trading on the FX market
Euro Rallies in Forex Trading
January 26, 2012
17-nation currency gains on risk appetite
Here comes the risk rally. Euro is heading higher in forex trading, gaining as the markets look forward to continued stimulus from the United States.
Yesterday, Federal Reserve Chair Ben Bernanke announced that interest rates would remain near zero probably until 2014. Additionally, with the release of the latest negative jobless claims data, many expect that the Fed will engage in more quantitative easing.
All of this is sending commodities and equities higher today, and weighing on the US dollar. As a result, the euro is getting a boost today, helped along by a renewal of Greek debt talks and recent positive news about the German Ifo.
See Also
- Euro in Forex Trading
Currency market news and information
Asia Session – January 26, 2012 2:36 AM
January 26, 2012
Asia Session (Tokyo close): Accommodative Fed sparking Asia FX inflows… Full text »
del.icio.us | Technorati | Stumble It!
Asia Session – January 25, 2012 8:18 PM
January 25, 2012
Asia Open: USD slightly bid on light volumes
<P Full text »
del.icio.us | Technorati | Stumble It!
New York Session – January 25, 2012 4:23 PM
January 25, 2012
The U.S. dollar tumbled after the Fed surprised markets by significantly extending their low rate pledge to late-2014 from the prior mid-2013. Lacker was the sole dissenter as he preferred to drop the time specific rate pledge as many investors were anticipating the FOMC would do amid interest rate forecasts. Projections were released by Fed members showing that 11 of the 17 participants expect rates to be at or below 1% in 2014 indicating that at or below 1% is what the Fed means when it says “exceptionally low levels”. With the current target at 0-25bps, we note that there is scope for small rate increases that would still result in “exceptionally low levels”. The FOMC statement said it expects growth to be modest and long-term inflation to remain stable. The Committee reiterated “significant downside risks” and reduced its 2012 growth forecast to 2.2-2.7% from the 2.5-2.9% forecast released in November. Full text »
