The hottest news available in today's market will no doubt be the interest rate decisions by the Bank of England (BoE) and the European Central Bank (ECB) today at 11:00 and 11:45 GMT, respectively. As interest rates are one of the primary tools used to value a nation's currency, the impact of these announcements will likely push the GBP and EUR to new extremes in the minutes after they are announced. Today will be an important news-trading day for forex traders!
The U.S. Dollar fell against major currencies yesterday as gains in world stoc... ( read more )
Archive for May, 2009
May 6, 2009 - The USD Rebounds for the First Time This Week
Buying of the Dollar resumed yesterday as equities finished lower and the U.S. economy showed better than expected manufacturing data. Traders are allocating their positions accordingly as the markets prepare to absorb a glut of economic news in the coming days which may create a level of heightened price volatility.
The U.S currency climbed versus the EUR on Tuesday and recovered against other major currencies after a drop in equities and the Institute of Supply Management's survey of service businesses showed that sector of the economy co... ( read more )
May 5, 2009 - Bullish Stock Market and Housing Data Take the USD Down
For the year thus far, the S&P 500 index is in positive territory. With this news the price of Crude Oil has also risen to its yearly high. However, the added buoyancy is hurting the Dollar as traders are taking on greater risk with higher yielding currencies and swapping out their safe-haven investments.
The Dollar continued its upward correction as a rise in stock markets and better than anticipated economic data fueled further risk-taking in the forex market. The EUR/USD was under pressure during trading hours in Japan and Europe, fallin... ( read more )
May 4, 2009 - The USD is Heading Lower on Global Recovery
The U.S. dollar approached a 3 week low against the EUR as better economic data worldwide saw investors grow increasingly confident that the worst in the global economy may be past, boosting risk appetite. The Dollar resent losses however, may be tempered before the Federal Reserve and U.S. banking regulators reveal the results from stress tests on the nation's 19 biggest banks this week. The results of the U.S. banks' stress tests may pose downside risks for the markets, and as such, the dollar may garner support as a safe- haven currency.
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May 1, 2009 - US Manufacturing PMI On Tap
The USD is likely to go volatile during and following the ISM Manufacturing PMI release today at 14:00 GMT. Meanwhile, forex traders are advised to take positions on trades, as a string of data releases coming out of Japan and Britain are likely to affect the greenback's main currency crosses.
The U.S. dollar rose against the Japanese yen and other major currencies on Thursday after data showed a decline in jobless claims, suggesting that the worst of the American recession may be over. The USD was last up 0.2% against the EUR at $1.3235 wh... ( read more )