The Yen declined against the Dollar yesterday as reduced risk sentiment had traders aggressively pursuing higher yielding currencies throughout the day. The Japanese currency came off a two-week high against both the Dollar and the EUR. Earlier in the day, traders sold off the Yen in anticipation of better than expected U.S. economic data. Those gains held throughout the day as the numbers beat market estimates. In early morning trading, the USD/JPY was trading at 98.95 while the EUR/JPY was at 130.67.
With little data to come from the Japan... ( read more )
Archive for April, 2009
April 16, 2009 - US Housing Release Might Push Further Equity Gains
As the market tests various support and resistance levels, traders are discovering a negative correlation between equities and the value of the USD. Each time there is a rally in the equities market, the USD takes moderate losses. This is likely due to investors pulling their money out of forex trading and into the stock market. With the release of U.S. Building Permits today at 12:30 GMT, the equity market may be affected. Look for the impact this has on the USD throughout today's trading.
Trading of the EUR/USD was extremely volatile toda... ( read more )
April 14, 2009 - Equity Market Puts Bearish Pressure on the Greenback
Liquidity was tight during yesterday's trading as holidays in Western Europe and the States reduced the number of market participants. This helped to exaggerate movements in the currency market. This type of trading yesterday helped the EUR continue to rise versus the Dollar.
In regards to the light news days traders have been experiencing recently, most active investors have tuned into the status of the stock market, which has seen a light downward slide lately. As a result, the USD also slid partially against its major currency counterpar... ( read more )
April 13, 2009 - Low Liquidity in The Forex Markets Take the USD Up
The movements we saw during Friday's trading session may be have been exaggerated on Friday and may be reversed. Today many trading desks will be vacant during the European trading hours. Traders should be aware of the volatile price swings that are prone to happen when there is a lack of liquidity in the forex market.
Last week the USD saw rising trends against most of the major currencies. The Dollar rose significantly against the EUR and the GBP; however it dropped against the JPY.
The greenback rose on relatively positive data from th... ( read more )
April 10, 2009 - The USD Expected to Close Trading Week In Gains
The greenback continues its correction as better unemployment numbers and rising import prices helped to strengthen the Dollar yesterday. Liquidity may be thin during today's trading due many European firms closed for holiday. However, this may only increase price volatility, creating the potential for traders to take advantage of other's missed opportunities.
The U.S Dollar advanced against the EUR and the Yen on Thursday as better than expected U.S. weekly jobless claims helped spark a rally in the market, rekindling appetite for riskier ... ( read more )