Rising equity markets continue to push investors towards riskier assets and away from safe haven currencies such as the USD and JPY. Traders today will be following the Unemployment Claims release for further signs the U.S economic recession is easing.
The Dollar recorded an extremely volatile day of trading as a variety of factors helped push up the demand for riskier assets, whilst reducing the demand for safe-haven positions. Equity markets in the U.S. rallied as many companies in the U.S. recorded far better-than-expected results. These... ( read more )
Archive for April, 2009
April 28, 2009 - The Mexican Swine Flu Pushes a Return to Safe Haven Buyi...
Traders continue to be influenced by the pandemic of Swine Flu in Mexico. Fears of reduced short term economic activity have traders moving out of riskier, higher yielding currencies into the safe haven Dollar and Yen. Crude Oil prices also fell yesterday as investors fear a weakening demand for international travel.
Yesterday's trading in the currency market was highly influenced by the outbreak of swine flu in Mexico. Worries about a spreading outbreak drove losses in equity markets, and with that came forex traders buying safe haven curr... ( read more )
April 27, 2009 - The Mexican Swine Flu Take the USD Down
The U.S. dollar fell on Monday to its lowest in a month against the Yen as worries about the spread of the swine flu from Mexico prompted investors into perceived safe-haven currencies such as the Yen and the CHF. Crude oil was also pushed down toward $50 a barrel on fears that the global flu pandemic that could give the world economy another knock.
The U.S. Dollar appeared to be losing ground against all of its major currency counterparts towards the end of last week's trading. It dropped to one-week lows against its rivals, falling to 1.3... ( read more )
April 24, 2009 - The Greenback’s Strength Set to Determine Crude Oi...
Whilst the Dollar declined in yesterday's trading against most of its major currency pairs, Oil prices recorded considerable gains. Thus lately, there has been an inverse relationship between the greenback and the black gold. Therefore it is important to follow economic news releases from the U.S. closely today, as a weak U.S. economy is likely to lead to bearish Oil prices. On the other hand, strong U.S. economic data and a strong Dollar are likely to lead to higher Oil prices later today.
The U.S currency continued to slip against the EUR... ( read more )
April 23, 2009 - Forex Traders Anticipate A Packed News Day
With an abnormal number of news events coming from Britain, the Euro-Zone and the United States today, forex traders have been in a frenzy to place their bets before the trading day gets underway. Trading during these news events, which typically carry a lot of market volatility, is a fast way to double your forex trading balance; the wise trader knows this. Special attention should be paid to the slew of manufacturing data coming from France and Germany between 7:00 and 9:00 GMT, as well as the U.S. Unemployment Claims report at 14:00 GMT. Wil... ( read more )