Most currencies, with the exception of a few, have been leveling off lately in anticipation of today's interest rate decisions in Europe and Britain. The European Central Bank (ECB) has been forecast to maintain its current rate of 2.00%, but recent data might prove this forecast inaccurate. Britain, on the other hand, is expected to slash its official bank rate from 1.50% to 1.00% at 12:00 GMT today. These rate cuts will no doubt push the value of their respective currencies to new price levels. Forex traders should be in the market today, bui... ( read more )
Archive for February, 2009
February 5, 2009 - The USD Goes Up Against All The EUR-Zone Currencies
The U.S currency held gains versus the EUR as it rose1.4% to 1.2848 on Wednesday after a report showed U.S. private sector employment in January fell in line with expectations. Against other major currencies, the USD remained steady, as investors were reluctant to tilt positions too far ahead of key events tomorrow; employment data in the United States and interest rate decisions by central banks in Europe.
However, analysts have said that traders should remain cautious about whether the USD would be able to sustain its gains as the fate of... ( read more )
February 4, 2009 - The USD Weakens on Increased Risk Appetite
Investors ditched the Dollar in yesterday's trading session for more risky assets, indicated by the fact that the Dow Jones climbed by 1.8%. This was sparked by a report from Merck and Company that posted better-than-expected earnings. On top of this, investors became more confident as the new Treasury Secretary, Timothy Geithner, reassured Americans that the Obama administration will do everything in its power to lift the U.S. out of recession.
The Dollar's drop was also owed to surprising, but again, better-than-expected Pending Home Sales... ( read more )
February 3, 2009 - The Greenback Shows High Volatility Session Around Rate ...
The Dollar began this week's trading by strengthening against its major pairs, only to rescind those gains against the EUR in later trading. Gains against the GBP held and the GBP/USD stands at a 1-week low. Risk aversion was the driving force in the currency markets yesterday and this theme typically lends support for the greenback. As risk recedes in the market, riskier bets that are funded by USD are sold and converted back into Dollars, helping to appreciate the currency.
The greenback saw a boost against the European currencies as Moody... ( read more )
February 3, 2009 - Rates Were Cut in Australia; European Rate Cuts May Foll...
The currency pair which could experience the highest volatility today may be the AUD/USD. The Royal Bank of Australia (RBA) slashed Interest Rates by 100 basis points this morning at 3:30 GMT. This would be the 5th consecutive rate cut by the RBA. In the coming days, the European Central Bank and the Bank of England are expecting similar meetings to their discuss interest rates. These falling global interest rates have been bouncing the market to bizarre highs and lows. Forex traders should take advantage of this volatility today and start open... ( read more )