Monday February 8, 2010 - 21:34:45 GMT
Share This Story
Forex Hound - www.forexhound.com
The U.S. Dollar is
trading lower at the mid-session as tensions eased regarding the fiscal
problems in Greece. Some traders feel that a resolution will be reached
which may involve aid or stronger assurances that Greece will strictly
follow its newly proposed budget.
The EUR USD experienced a
choppy two-sided trade early in the session. Continue to look for
volatility, highlighted by a choppy trade until the European Central
Bank, European Union or International Monetary Fund offers a viable
solution to the Euro Regionâ€™s fiscal problems.
choppiness is affecting the British Pound at the mid-session. Besides
the weak economy, investors are now having to deal with the possibility
that the U.K. will suffer the same fate as Portugal, Spain and Greece
and have its debt rating reduced because of its huge budget deficit.
Furthermore, news that the June election could result in neither party
receiving a majority is also hurting the British Pound.
JPY is little changed at the mid-session, but this trading pattern
could shift quickly if risk aversion returns to the markets. Budget
problems in Europe, the U.K. and the United States may encourage
traders to seek the safety of the lower yielding Asian currencies. The
Japanese Yen is taking its clues from the stock market today.
direction of the USD CHF is being determined by the movement in the
Euro. A weaker Euro will increase the chances of a Swiss Bank
intervention, thereby strengthening the Dollar versus the Swiss Franc.
A short-covering rally in the Euro will pressure the USD CHF.
gold and crude oil should be helping to pressure the USD CAD, but it
looks as if the choppy equity markets are exerting a larger influence
on this currency pair. Look for the Canadian Dollar to remain
underpinned as long as it is getting support from the commodity
complex. A bullish turnaround in the stock market will help weaken the
USD CAD late in the session. Some traders feel that dovish comments
from Bank of Canada deputy governor Duguay are helping to limit gains.
He reiterated that interest rates will hold steady until at least the
end of the second quarter. Furthermore, he emphasized a weaker Canadian
Dollar scenario is necessary to keep the economic recovery on course.
AUD USD and NZD USD are feeling downside pressure while trading inside
of Fridayâ€™s ranges. Technically, these markets are poised to move
higher following Fridayâ€™s closing price reversal bottom. It looks as if
a much higher stock market is going to be needed to drive this market
to a strong finish today. Otherwise rallies will continue to be sold.
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."