Turmoil in the U.S. auto industry had currency traders moving into safe haven positions of the Dollar and Yen. Further equity losses also contributed to a lack of confidence in the global economy and lower risk taking.
Yesterday there was little reason for Forex Traders to take positions in riskier currencies. Over the weekend Treasury Secretary Geithner said some banks may need further capital injections. Also shaping the markets was the Obama administration's position that it may prefer a bankruptcy filing of an auto maker versus further b... ( read more )
Archive for March, 2009
March 30, 2009 - The USD Climbs on Speculation That ECB will cut Rates to...
The Dollar rose 0.2% against the EUR as weaker than expected Euro-Zone industrial orders and German inflation data undermined recent investor confidence and favored the safe haven greenback. The ECB is pressured to follow the Federal Reserve in buying bonds to lower Interest Rates, a policy known as quantitative easing. Along expectations that it will cut its main policy Rate by half a percentage point to a new record low of 1%, the market is keen to see how far it might follow other central banks such as the Fed in taking unconventional steps ... ( read more )
March 27, 2009 - The Greenback Continues To Recover.
The Dollar has seen increased strength as rising U.S. equity markets helped to erode the dramatic price declines from the previous week. Trading will end this week as a slue of economic data due to be released today will provide ample opportunities for traders to enter the market on higher than normal volatility.
The Dollar rose yesterday against most of its major rivals as riskier currencies fell out of favor. Despite strong gains in U.S. equities, the Dollar gained ground as the likelihood of further European Interest Rate cuts loom over ... ( read more )
March 26, 2009 - The USD Shows Local Weakness
Many forex traders in the market would be blind to have not noticed the sharp volatile movements occurring in the world's primary currency pair: the EUR/USD. This tug-o-war between the two largest world currencies comes about as each side takes aggressive steps to combat the recent recession. As the U.S. continues to publish positive economic data, and the Euro-Zone considers taking steps similar to those taken in the States, this pair's sharp volatility will no doubt continue through to next week.
The Dollar finished Thursday's trading ses... ( read more )
March 25, 2009 - High Volatility Expected On Busy News Day
After yesterdays relatively calm trading session, today the economic calendar is filled with high impact data that threatens to sow large volatility into the market. From the wide range of news reports, ForexYard advises its traders to pay special attention to the German Business Climate, the U.S Durable Goods Orders, New Home Sales, and Crude Oil Inventories.
The U.S currency extended gains on its Japanese and European counterparts Tuesday as optimism about a U.S. government plan to remove bad assets from banks' balance sheets prompted inve... ( read more )