Monday September 28, 2009 - 12:29:10 GMT
Share This Story
Forex Hound - www.forexhound.com
U.S. Dollar to Open Mixed Against Majors
The U.S. Dollar is expected to open mixed this morning. The Greenback is showing weakness versus the major European currencies and weakness against Asian-Pacific markets.
The Dollar is showing strength mainly because oversold conditions and economic uncertainty have encouraged investors to lighten up on their positions in higher yielding currencies and curtail fresh demand.
The G-20 wrapped up its meeting this weekend by agreeing to give emerging markets more influence at the International Monetary Fund and the World Bank. Look for the roles of the emerging markets to increase once the global economy begins to recover. This could help lay down the foundation for a diminished role for the U.S. Dollar as the worldâ€™s reserve currency.
Technical factors are helping to weaken the EUR USD overnight. Last weekâ€™s close formed a weekly closing price reversal that was confirmed overnight. This formation often leads to the start of a 2 - 3 week correction.
The GBP USD is still reeling from the negative comments from Bank of England Governor Mervyn King. Late last week, King stated his opinion that he preferred a weaker currency to help stimulate U.K. exports.
The Japanese Yen, on the other hand, continues to gain versus the U.S. Dollar as the Japanese government is not expected to intervene to prevent the Yen from rising. Last week Japanâ€™s Finance Minister said he said he opposes government intervention in the currency markets.
The AUD USD is showing a little strength overnight despite last weekâ€™s technical closing price reversal top. This pattern is expected to exert a bearish influence on this market for the next 2 to 3 weeks. Weakness in the equity and commodity markets should help accelerate the move to the downside.
The NZD USD closed off last weekâ€™s high last but still finished higher for the week. Last nightâ€™s steady equity markets are helping the New Zealand Dollar maintain its firm status. Look for a steady market today unless U.S. equity markets continue their slide.
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."