FOREXYARD: Forex News Blog | |
- GBP Finishing Weak Against the Greenback
- USD Retail Figures Arrive
- British Inflation Figures Down
- Moody’s Downgrades Six Euro Zone Nations
- USD Up on Several Fronts
- Price of Crude Oil On the Rise
- EUR Comes off Two-Month High to Close Out Week
- USD Retreats vs. Riskier Currencies, Sees Gains against JPY
- Platinum-The untouchable metal
- US Unemployment Claims may Boost Dollar
- USD/JPY Continues to Make Gains
| GBP Finishing Weak Against the Greenback Posted: 14 Feb 2012 09:17 AM PST
Up against a safe haven U.S. dollar, the GBP is finishing a European session at a low point. The USD was unable to maintain gains against all of its counterparts on Tuesday, however, the Greenback did succeed in coming out on top of the Sterling. While both the UK and the US received somewhat lackluster news in regards to CPI figures and retail sales, respectively, the GBP might have taken more of a hit from Moody’s Investor Service. The UK avoided being handed a downgrade but it did receive a warning from Moody’s that its AAA rating was in danger of being downgraded. After witnessing several euro zone countries being downgraded, including Italy, Portugal, and Spain, these warnings from Moody’s should not be taken lightly. |
| Posted: 14 Feb 2012 07:50 AM PST
U.S. retail figures for the month of January arrived this afternoon. After enjoying an increase of 0.8% for the month of December, the U.S. turned in a 0.4% gain. Many attribute this gain to the large amount of post-holiday shopping in the States. Large retail chains try their best to attract shoppers once the holiday season has ended. While these efforts paid off somewhat, the overall retail figures did not meet expectations of a 0.6% gain. The USD did experience gains earlier in the day and with these numbers being released, there is the possibility that the strength of the USD will continue throughout the day. We’ve already seen strong numbers put up against the euro, Sterling, and Swiss Franc, be aware that the USD could solidify these gains. |
| British Inflation Figures Down Posted: 14 Feb 2012 06:57 AM PST
The consumer price index (CPI) released by the UK this afternoon came out to an annual rate of 3.6%. While this news is certainly positive, this still does not meet the Bank of England’s target of 2%. Some trading the GBP/USD are taking this news cautiously as there are a number of factors that have been driving down the Sterling since last evening. The news of the Greek parliament’s decision to approve austerity measures has waned and is causing mixed feelings amongst investors. Additionally, Moody’s downgrade of several euro-zone countries and warning to the UK is not being taken lightly. In the face of this uncertainty, the USD has seen gains this morning against the GBP. |
| Moody’s Downgrades Six Euro Zone Nations Posted: 14 Feb 2012 06:19 AM PST
Tuesday morning saw the downgrade of several euro zone nations by Moody’s Investor Service. Italy, Spain, Portugal, Slovenia, Slovakia, and Malta all saw their ratings downgraded in the face of growing uncertainty about the euro zone’s ability to effectively solve its debt crisis. Italy was downgraded from A3 to A2, Spain from A3 to A1, and Portugal from Ba3 to Ba2. According to Moody’s, these countries continue to perpetuate a negative economic forecast despite efforts made to address debt issues. Slovakia, Slovenia, and Malta also had their ratings downgraded; however, news of these downgrades will have less of an impact on Forex trading. In a surprise move, Moody’s also issued a warning to the UK and France that their ratings were also in danger of being downgraded. The effects of these ratings have already been witnessed in the Forex market this morning. The USD has gained on several fronts, including against the euro, Swiss Franc, and Japanese Yen. Traders would be advised to keep an eye on how this trend develops throughout the day. |
| Posted: 14 Feb 2012 03:17 AM PST
With growing uncertainty hitting the euro zone and the GBP, traders are looking for stability in the USD. Following Moody’s downgrade of several countries across the EU as well as the warning sent to the UK and France, the USD has seen significant gains against several currencies. Against the euro, the USD was valued at 1.3126 as of this morning. This staves off a recent slide for the USD and sets it up for further possible gains as market action unfolds this afternoon. As of this morning, the USD/CHF was traded at $0.9201, which shows stark improvement from the previous 4 days. Also against the JPY, the greenback rallied to a 3-week high of 78.02. |
| Price of Crude Oil On the Rise Posted: 13 Feb 2012 03:27 AM PST
After a brief dip in value last week, the price of crude oil rose back up this morning. Fears regarding the possibility of Greek austerity measures not being passed drove prices down toward the end of last week. With the news of fresh measures being approved by the Greek parliament last night, crude oil has steadily gone up in value. Since the news broke this morning, oil has gained 94 cents to $99.61 a barrel. Traders will also want to note the international developments that are effecting prices. These include the impending European embargo of Iranian oil. As the situation in the Middle East grows increasingly tense, there is a possibility that the price of crude oil will remain relatively high. Traders will want to continue monitoring developments in the region for clues as to the direction the commodity will take. |
| EUR Comes off Two-Month High to Close Out Week Posted: 10 Feb 2012 05:03 AM PST
The EUR/USD came off a two-month high today, following fresh concerns that Greece could soon default on its debt. The pair spiked as high as 1.3322 yesterday, after Greece reached a deal on austerity measures late in the European session. Hopes that the country would soon reach a debt swap deal with its creditors were dashed today, after euro-zone finance ministers demanded additional spending cuts from Greece before approving a second bailout. The EUR/USD has dropped close to 100 pips so far today, while the EUR/CHF has dropped as low as 1.2090. The news adversely affected other riskier currencies, including the Australian dollar, which has tumbled well over 100 pips against the greenback since the beginning of the day. Crude oil has once again dropped below the psychologically significant $100 a barrel, and is currently approaching the $98 level. Turning to next week, traders will want to continue monitoring any announcements out of the euro-zone. In addition to Greece, Portugal is likely to soon require a bailout. Further negative news out of Europe may result in riskier currencies extending thier bearish trends. |
| USD Retreats vs. Riskier Currencies, Sees Gains against JPY Posted: 09 Feb 2012 08:31 AM PST
The US dollar saw a mixed trading day today, as positive news boosted risk taking in the marketplace which led to gains for currencies like the euro and British pound. News that the Bank of England will inject an additional 50 billion pounds to support the economic recovery, combined with word that Greece had finally reached an austerity deal, caused investors to shift their funds away from safe-havens. As a result, the EUR/USD spent much of the day hovering around the 1.3300 level, an increase of almost 100 pips from a day earlier. While the greenback dropped against riskier currencies, it was able to extend its gains against the Japanese yen following the release of a better than expected US Unemployment Claims figure. The figure showed that 358K people claimed first time unemployment benefits in the US last week. That number was substantially lower than the anticipated 369K, and was seen as further proof that the US economy was moving ahead with its recovery. The USD/JPY reached as high as 77.34 after the news was released, before staging a slight downward reversal. Turning to tomorrow, traders will want to continue paying attention to any news out of the euro-zone, which could lead to an increase in risk taking. In addition, the UK PPI Input figure at 09:30 GMT, followed by Trade Balance reports from the US and Canada at 13:30 GMT, are likely to generate heavy trading to close out the week. Should any of the economic indicators come in above expectations, the dollar is likely to extend its losses against the European currencies. |
| Platinum-The untouchable metal Posted: 08 Feb 2012 11:56 PM PST
Platinum Reaches 5 month High I always go on about Gold and Silver but never give enough respect to Platinum. Currently rising to a 5 month high due to strikes in South Africa’s’ Rustenburg Mine, which happens to be the world’s largest Platinum mine. Below you will find the Platinum Daily Chart:
As you can see, the thick yellow trend line indicates the solid uptrend over the months. As long as the strikes continue , platinum may remain on the up. |
| US Unemployment Claims may Boost Dollar Posted: 08 Feb 2012 08:17 AM PST
The US dollar spent much of the day today range trading against most of its main currency rivals, including the euro, British pound and Swiss franc. Traders were hesitant to bet against the greenback ahead of possible news on a Greek debt swap deal. The one exception was against the Japanese yen. The USD/JPY took moderate losses throughout much of the day before stabilizing around 76.80 during the evening session. Turning to tomorrow, market sentiment will likely be determined by a combination of international indicators. First, traders will want to pay attention to interest rate decisions from both the UK and euro-zone. While no changes are forecasted for either rate, the press conferences that follow the indicators are likely to shed some light on the current state of the British and euro-zone economies. Any positive sentiment could result in risk taking, which will likely cause the dollar to drop. Later in the day, traders will want to pay attention to the weekly US Unemployment Claims, scheduled for 13:30 GMT. The figure will shed some additional light on the current employment situation in the US, following last week's positive Non-Farm Payrolls report. A lower than expected unemployment figure may help the greenback during the evening session. |
| USD/JPY Continues to Make Gains Posted: 07 Feb 2012 07:55 AM PST
The US dollar extended its recent bullish run on the Japanese yen today, with the pair reaching as high as 76.85 before staging a slight reversal. In addition to a positive US jobs report from last week, the pair's ascent was attributed to reports that the Bank of Japan (BOJ) secretly intervened in the marketplace late last year. While the greenback is still fairly close to the lows it hit against the yen last week, it appears that fears of another BOJ intervention have subsided for now. Turning to tomorrow, USD traders will want to continue monitoring the euro-zone to gauge the level of risk taking in the marketplace. While positive news regarding the Greek debt swap talks is likely to boost the EUR/USD, analysts are warning that additional worries in the euro-zone could limit how high the pair moves. The same can be said for the AUD/USD. While the dollar hit a six-month low against the Aussie during today’s trading, any negative euro-zone news could cause the current trend to reverse. |
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