Wednesday October 22, 2008 - 09:51:30 GMT
Share This Story
Global-View - www.global-view.com
FX Blog- USD Trading Outlook: New York Open for October 22, 2008
USD Trading Outlook: New York Open for October 22, 2008
- There is nothing more difficult than for leveraged traders to try to pick bottoms in a liquidating market. New lows often trigger fast liquidations. Hungary has moved into the cross-hairs of the hedge fund raiders now. There is also talk of counter-party risk on cash Chinese commodity contracts.
- We noted yesterday that U.S. markets had a risk aversion feel to them. The Nikkei tumbled today due to the rising JPY. Other Asian bourses fell sharply as well.
- There is a distinct lack of confidence in key central bankers, King of the BOE and Trichet of the ECB. Kingâ€™s pronouncement that the U.K. economy is in recession has been greeted with derision by those who have been warning of such for months. CBâ€™s are expected to anticipate, not follow.
- The USD and JPY remain the anti-EUR currencies. The ECB and BOE have lost credibility and the EUR and GBP have been tumbling as a result. The CHF is also weaker. This is a risk aversion profile. Commodity currencies (CAD and NZD) are weaker in line with risk aversion. The AUD has held steady. Lofty Australian inflation will not to halt RBA policy ease. Gold has fallen sharply.
- Crude oil prices are weaker ahead of the emergency OPEC meeting Friday and weekly energy data. Expectations for production cuts are seen as a sign of weakness. European bourses are weaker. U.S. shares are expected to open lower â€“ more risk aversion.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."