New York Session – February 14, 2012 4:09 PM

February 14, 2012

The USD outperformed as risk sentiment retreated on disappointing progress out of Athens and weaker than expected growth in U.S. retail sales. EU finance ministers were set to meet tomorrow but the meeting was cancelled and will be replaced with a conference call as Juncker said that Greece and the Troika needs to carry out further technical work. Reports have indicated that Greece has not yet provided the required political assurances to implement austerity measures as opposition leader Samaras has refused to sign the commitment. The pressure is on Greece to meet the demands of the EU to obtain necessary funding as German Finance Minister Schaeuble said that Europe is better prepared for a Greek default. The euro is weaker as the clock ticks for Greece with EUR/USD briefly dipping below the 1.31 figure to session lows of around 1.3080. The pair is back above the 21-day SMA and currently trading around 1.3110. Full text »

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Moody’s Downgrades Largely Ignored

February 14, 2012

US dollar gains in currency trading, though

Moody’s lastest downgrades initially sent a small shock through the currency market, but since then, many of the high beta currencies affected have pared losses. While the US dollar still remains higher against the euro and the pound, the European currencies have made progress today.

Moody’s downgraded sovereign debt in Spain, Portugal and Italy. Additionally, Moody’s shifted the outlook for Great Britain, France and Austria to negative. The news initially sent the euro and pound lower, but the currencies have since pared many of their losses.

Indeed, the forex market has decided to largely ignore the news as some mild optimism about a Greek debt deal emerges, and as the German ZEW comes in higher than expected. There is still some mild uncertainty in the markets, and the US dollar has the upper hand, but its gains have been limited. 

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Canadian Dollar Softens in Forex Trading

February 14, 2012

Loonie lower in currency trading

The Canadian dollar is softening today, heading a little bit lower as disappointment with US retail data affects high beta currencies. The US is one of Canada’s main trading partners, so less than great retail sales data in the US means trouble for Canada.

Even though the loonie softened quite a bit earlier in trading, it has since pared many of its losses. Canadian dollar is being somewhat supported with the help of large purchases of the loonie against Japanese yen, as well as bracing news out from the ZEW.

Additionally, oil prices are rising, and that should also help support the Canadian dollar somewhat. Loonie is still down against the greenback, but the gap has closed quite a bit since earlier. 

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Asia Session – February 14, 2012 1:20 AM

February 14, 2012

Investor
sentiment took a hit early in the session after Moody’s adjusted its ratings of
9 European sovereigns. Whilst we suspect these ratings adjustments didn’t come
as a surprise to the market they added to negative sentiment stemming from
Greece, creating a toxic mix for risk assets in Asia.

Full text »

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New York Session – February 13, 2012 4:05 PM

February 13, 2012

Sentiment is modestly higher and the buck was mostly softer against the major currencies on hopes for a Greek debt deal. The buck is weakest against the high beta currencies NZD and AUD and is relatively flat against the EUR, JPY, CHF and SEK. Markets are cautiously optimistic after Greek parliament approved austerity measures required as the nation seeks to secure a €130B bailout. Several hurdles remain including implementation risks as well as ongoing PSI negotiations. Furthermore, a Greek cabinet reshuffle is expected after Greek ministers resigned in protest. In addition to protests within the government, the Greek public took to the streets setting buildings on fire in Athens as unrest builds while the government struggles to obtain additional aid. The euro traded with a softer tone, declining against the USD throughout NY trading with EUR/USD dipping below the 1.32 figure after S&P downgraded 15 Spanish banks. Full text »

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US Dollar Slips against Yen in Forex Trading

February 13, 2012

Greenback falls after earlier gains

US dollar is slipping against the Japanese yen in forex trading, after gaining earlier. Japanese GDP news originally gave the US dollar a boost against the yen, but now the dollar has slipped.

Dollar is displaying general weakness today, heading lower as risk appetite rises around the world. The dollar index has fallen, and other currencies are in favor today — including the Japanese yen.

However, the situation could change quickly. Euro is struggling to maintain its gains against the UK pound, and there are still plenty of challenges remaining to the stability of the eurozone. 

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Euro Struggles to Maintain Gains Against Pound

February 13, 2012

Euro in forex trading

Euro is higher in forex trading today, gaining against the US dollar, yen and UK pound. However, the euro’s gains against the pound have been limited by better expectations for the sterling.

Euro is higher after the news that the Greek parliament accepted the terms of tighter Eurogroup requirements for a bailout. Even though Greece is experiencing unrest as a result, the euro is gaining.

However, euro’s gains against the pound have been limited by good economic news coming out of Britain. A retail industry group believes that the UK economy is poised for growth in 2012, and that further quantitative easing by the Bank of England will be unnecessary.

With this good news, and with Greece still in turmoil and concerns about other European countries high, it is little surprise that the euro is struggling — even though it is a higher against the UK pound for now.

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Лондонская Сессия – February 13, 2012 9:59 AM

February 13, 2012

Когда
протестанты вышли на улицы Афин, законодатели одобрили меры саморегулирования
необходимые для получения 130 млрд. евро по программе поддержки, которые явКогда
протестанты вышли на улицы Афин, законодатели одобрили меры саморегулирования
необходимые для получения 130 млрд. евро по программе поддержки, которые
являются единственной преградой между Грецией и дефолтом.

Full text »

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Will the US Dollar See a Recovery Next Week?

February 10, 2012

US dollar forex trading forecast

US dollar is higher today, thanks to the Greek drama continuing to play out. Greek leaders had presented an austerity plan to European leaders, but now Europgroup leaders are saying that they want even more austerity — and acceptance by Greece’s parliament.

The result is that the euro is plunging today. The US dollar is being sought as a safe haven, and could see recovery next week. Even though economic data in the US is mixed, the dollar is still high in demand.

Unemployment claims dropped this week, but that good news was countered by today’s release of lower consumer sentiment data. For now, it appears as though the US dollar forex trading forecast could be set for a recovery. If the Greek drama continues, forex traders will value the stability of the greenback.

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Euro Drops in Forex Trading

February 10, 2012

17-nation currency falters on incomplete Greek debt deal

Many thought that a Greek debt deal was finally being reached earlier this week. However, Eurogroup leaders are stipulating further measures to Greece, and the deal remains incomplete.

Indeed, the talks are on the verge of falling completely to pieces. As a result, the euro is dropping in forex trading. Euro is pulling back by quite a bit as concerns about what’s next dominate. Mixed economic data out of the US isn’t helping the risk situation.

For now, forex traders are interested in safe haven. Economic worries, and concerns about the future of the eurozone have them scrambling for the safety and stability of the US dollar, and that means, for now, that the euro has no place to go but down.

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