The technical correction continues to dominate the leading currencies, as both the EUR and the GBP have strengthened significantly against the Dollar lately. This could change today as the U.S Funds Rate will be announced at 18:15 GMT, and is forecasted to stay at 0.25%. However, any change that might take place is prone to sow disorder in the market, and forex traders should be ready for it.
The Dollar recorded a volatile trading session on Tuesday after U.S. data showed that the construction of new houses increased by an unexpected 22%. In... ( read more )
Archive for March, 2009
March 17, 2009 - The EUR/USD Hits 5 Weeks Low
The European currency may gain further after Germany rebuffed a U.S. plan to increase fiscal stimulus to help pull the global economy out of recession. The fact the Euro-Zone nations avoided making any fresh commitments to extend spending, should encourage more investments in Europe and, as a result, to boost the EUR currency.
The Dollar pared losses against the EUR on Monday after the New York Federal Reserve Bank's manufacturing index fell to a record low in March, adding to worries about the U.S. economy. The USD experienced some gains, ... ( read more )
March 16, 2009 - The USD Weakens Ahead of Fed’s Rate Announcement
After depreciating consistently over the past few weeks, the USD is now traded over 1.29 against the EUR, and over 1.40 against the GBP. This week on Wednesday, at 18:15 GMT, the Federal Reserve will deliver an Interest Rates statement, and is widely expected to leave it on 0.25%. However, Bernanke's speech from yesterday might hint that a rates hike is no longer taboo. Such decision could create mayhem for the leading currencies, and forex traders must be prepared.
With a rally in stocks and other equity markets last week, traders witnessed... ( read more )
March 13, 2009 - The G20 Summit on Economy Starts Today.
The finance ministers and central bankers from the top 20 industrialized nations are set to begin another economic summit today in which a multitude of recent concerns about the economy will likely be addressed. These meetings, which can last days, have an indirect impact on the market and decisions reached during its meetings are typically implemented at a much later date. It is important for forex traders to follow any statements made regarding stimulus packages and interest rate cuts, however, as these will offer insight into future monetary... ( read more )
March 12, 2009 - Crude Oil Dives $2 a Barrel, As The USD Weakens
During yesterday's early afternoon hours, Crude Oil received a hasty sell-off when investors unwound their positions for riskier assets. With a recent boost to equity markets, the USD has also found itself losing strength to a number of its currency rivals, particularly the EUR. If this stock rally can continue, we may see these trends persist throughout the rest of the week.
The USD traded significantly lower yesterday against most of its major crosses. The heavy selling of the Dollar continued for the second day in a row as a rise in risk-... ( read more )