The U.S. and Japanese currencies are likely to keep drawing demand as investors stay away from higher-yielding currencies such as the AUD, analysts said. The Yen rallied against Sterling and the Australian and New Zealand dollars, which each fell roughly 1.5% against the Japanese currency.
The Dollar continues to show considerable strength over its currency rivals as financial worries have returned to the market. The 1st quarter earnings season has arrived and drops in equity markets are fueling renewed risk concerns which weigh on the curr... ( read more )
Archive for April, 2009
Gold Trading Report – April 8th
Review
Gold has seen the steepest decline since mid March, Gold has closed a 6% downfall from April 2nd up until a couple of days ago consolidating at $870/Oz. The downtrend occurred due to the moving of US dollars into the equity market especially the major European stock exchanges and other US dollar backed investment instruments, the decline in demand for Gold in the jewelry market and higher demand for scrap has assisted the downfall.
The uncertainty of global stimulate packages, decline in European and US stocks and relatively low pr... ( read more )
April 8, 2009 - The USD Gains as Euro Market Optimism Fades
The European single currency came crashing on Tuesday after data showed the Euro-Zone economy recorded its deepest ever quarterly fall in the 4-quarter of 2008. As a result, the currency market moved back to the U.S currency after optimism regarding the European economy faded. The USD which is seen as a safer bet than others currencies in times of market stress will likely keep drawing demand as investors stay away from riskier assets.
The USD has begun a moderate rally these past two days, starting from as high as 1.3575 against the EUR, th... ( read more )
April 7, 2009 - Equity Markets Loses take the USD Up
The euphoria of last month's equity rally has finally worn off and the Dollar is the primary beneficiary in these market conditions. The Dollar tends to rise as equity markets weaken with reducing risk taking in the currency markets.
Yesterday a drop in equities signaled an end to the higher risk taking environment and helped to strengthen the Dollar against the EUR and the GBP. The Dollar also rose to a 5-month high against the Japanese Yen to close above the significant 100 Yen mark. The Dollar tends to rise as equity markets weaken, redu... ( read more )
April 6, 2009 - US Shows Highest Unemployment Figures Since 1983
Last week's release of negative employment data from the United States has many forex traders running from the USD. With a rally taking place among Euro-Zone currencies, as well as the price of Crude Oil, there appears to be plenty of investment opportunities more profitable than the U.S. Dollar lately. Forex traders would be wise to change gears and pick up other investments than the typical safe-haven of the USD.
Last week was mainly a bearish week for the Dollar. The USD dropped significantly against the EUR and the GBP. The EUR/USD cros... ( read more )