November 18, 2008
Euro remains weak in forex tradingEUR/USD continues its rangebound struggle on the FX market today. The euro has periodically been attempting to rally in forex trading against the greenback, but it just hasn’t been working.
However, the U.S. dollar, in its turn, has been experiencing difficulty showing solid strength in FX trading as well. EUR/USD just appears to be stuck for now, waiting to see where the affected economies will go in the next couple of weeks.
FX Street offers this advice for dealing with EUR/USD on the FX market:
Big picture remains the same and best long strategy is to go on holiday, for the short term – just relax. There is nothing what would suggest some opportunity to make some profit, all actions would lead to 50/50.
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November 18, 2008
Sterling pulls back after attempted rally in currency tradingThe U.K. pound remains under pressure in forex trading on the currency market today. The sterling attempted a rally against the U.S. dollar in currency trading earlier, but has been falling back.
One of the fears now is that inflation is falling, and that deflation could be the next hurdle faced by the British economy. Interest rate cuts are in the works, though, and that should help keep deflation at bay.
Resistance now seems to have formed about the $1.50 level for the U.K. pound in forex trading, and it will be interesting to see how long the sterling can try to push through in currency trading.
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November 17, 2008
Currency trading and global recessionEven while officials hesitate to officially declare that the U.S. is in a recession, that situation has been confirmed in Europe and in Japan. The two economic powers have been confirmed in a recession.
However, in spite of this, the euro has rallied this morning in forex trading, and the Japanese yen continues to dominate the U.S. dollar in currency trading.
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November 17, 2008
Currency trading in pairsOne of the features of forex trading is that someone is always making money. This is due to the nature of currency trading in pairs.
Because of the way FX trading is executed, there is always someone making money, since there is always the other side to the pair. If the euro is sinking in forex trading, it means that the U.S. dollar is gaining. So, even if you wrongly favored the euro, someone else is benefitting from favoring the U.S. dollar.
The currency trading in pairs also allows you to short AND favor the same currency simultaneously. You can favor the U.S. dollar against the euro, and in another transaction short the U.S. dollar against the Japanese yen.
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November 17, 2008
Greenback declines in the short-term in currency tradingThe U.S. dollar forex trading forecast for the short-term is showing a story of decline. The euro is rallying in forex trading, and the yen continues to dominate as risk aversion remains a fixture on the currency market.
The greenback is declining in currency trading on the FX market as economic data is expected later today. This is expected to show a greater slowdown — and a more prolonged one — than what is expected in Japan. Bloomberg reports on the U.S. economy and the dollar forex trading forecast:
“There is a perception that the U.S. economy is more exposed to a slowdown than Japan,” said
Neil Mellor, a currency strategist in London at Bank of New York Mellon Corp. “The yen is winning in the battle with the dollar because it is perceived as a greater safe haven.”
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November 17, 2008
U.K. pound drops in currency tradingAs one might expect, the U.K. pound continues to drop in currency trading on the FX market. Indeed, U.K. rate cut expectations are sending the sterling lower in forex trading as the economic news continues to worsen.
In terms of both fundamental analysis and technical analysis, it seems clear that the U.K. pound will likely struggle moving forward in currency trading. Indeed, it will take a massive turnaround from the British economy to support the sterling in forex trading.
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November 17, 2008
Currency trading with the euroThe euro is rallying this morning in forex trading on the currency market as the G-20 meeting concludes. Even though the participants made noises and promises that they will combat the current situation of global recession, no unified plan was developed.
However, despite this, currency trading with the euro is picking up. The assumption is that members of the euro zone will do their parts to get the European economy moving. The euro has rallied overnight, even though risk aversion remains an issue on the FX market.
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November 17, 2008
New financial rules hammered at as wellOver the weekend, the G-20, comprising the leaders of the biggest economies (developed and emerging) met to try and decide what to do about the global recession. There was very little real substance in the meetings, but the leaders did pledge the following:
- Coordinated action to end the global recession.
- Agreement on some new rules regarding financial markets.
The idea is to try to stimulate the global economy, and to make it more difficult for something like this to happen again through requirements to be more transparent and to keep greater capital on hand.
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November 14, 2008
Sterling recovers slightly against euro in forex tradingThe U.K. pound is paring some of its losses in currency trading on the FX market today. The sterling is recovering slightly against the euro in forex trading, as it is apparent that crash of the pound might have been a little excessive.
However, there is little to support sterling in forex trading, since the economic news continues to be bleak, and it is unclear whether the Bank of England managed to cut rates in time to avert disaster.
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November 14, 2008
Loonie in forex tradingThe Canadian dollar continues to drop in currency trading on the FX market. Just a year ago, as the effects of the subprime lending crash became really apparent, the loonie was in the area of parity with the U.S. dollar. Indeed, the Canadian dollar spent a great deal of time in the neighborhood of parity with the greenback.
Now, however, that seems to be a thing of the past. Commodities were on the rise then, and now they are falling. Oil prices are especially important to Canada, since the country exports so much of it. With oil prices falling, there is little to support the loonie in forex trading.
And, with the prospect of global recession, it appears that there will be little in the near future to help support the Canadian dollar in currency trading. As a result, it is likely to continue to struggle on the FX market.
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