In the early morning market trading the EUR fell from its three week high against the USD whilst at the same time Asian markets were able to enjoy an upswing after a positive move on Monday trading. Yesterday a number of senior EU Finance ministers met in Brussels though not only was there no concrete plan agreed upon, the increasing concern over failure to reach an agreement suffered an additional significant setback. There is now real concern amongst European policy makers and traders that Greece is heading towards a default.
T... ( read more )
Daily Forex Analysis
January 5, 2012 - EUR Corrects Itself Following German Debt Auction
The euro staged a downward reversal yesterday, following a German debt auction that caused investors to once again place their funds in safe-haven assets. Today, traders will want to pay attention as major market volatility is expected following news events from the UK, US and Canada.
USD - USD Rebounds Following Return to Safe-Haven Assets
The US dollar had a very bullish day yesterday, following a less than enthusiastic German debt auction which sent investors back toward safe-haven assets like the USD and CHF. The dollar saw upwa... ( read more )
December 29, 2011 - US Data to Close out the Year on a High Note
There has been a noticeable trend of stronger US economic data over Q4. Today's last batch of US numbers for this year may show the US economy go into 2012 on a high note.
USD - US Data to Close out the Year on a High Note
There has been a noticeable trend of stronger US economic data over Q4. Today's last batch of US numbers for this year may show the US economy go into 2012 on a high note. This afternoon we'll get pending home sales, unemployment claims, and the Chicago PMI. Last week's housing data was mixed with existi... ( read more )
December 27, 2011 - Volume expected to increase today Forex and broad market...
Volume will begin to increase slowly to the Forex and broad markets today. The EUR/USD pair will be of interest to watch as traders begin to test its ranges. The GBP and AUD will both follow the EUR, but it should be noted that the U.K. and Australia are celebrating Boxing Day. Many equities markets will open today, being led by Wall Street which investors will use as a barometer. It should be noted however that normal market volumes will not return until perhaps late next week after the New Year’s holiday and until then correlations for trad... ( read more )
December 26, 2011 - The EUR Short Squeeze Presents Opportunities
The overstretched market positioning has allowed for a bit of a EUR short squeeze on the back of a solid Spanish bond auction and strong US housing numbers. However, there are significant resistance barriers in the 1.3140 area.
The most recent CFTC Commitment of Traders report shows speculators in the futures market have built their largest EUR short position since May 2010. As of last Tuesday speculators were holding -116k contracts short, up from -95k. The one sided positioning highlights the market's pessimism against the EUR but also bri... ( read more )




