Archive for October, 2009
Is USD loosing hopes of recovery?
The analysis of currency pair short and long position at the Forex trading platform is the most important aspect of the market trade analysis. The better the knowledge about the market the better will be the next trading decision at the currency trading.
Now, as the weekend has arrived it’s time to analyze the position of USD at the Forex trading platform and it’s trading against other major currencies.
The majority of US trading figures indicate that the USD is turning down and now the question is that how rapidly it was heading towards lower trading position.
The possible reasons of weakness in the USD hold at the Forex trade involves the puffing US budget deficit, low US produce and the worry about the reserve diversification decision of the Central Bank.
Few analysts think that the re-back in the USD trade will continue in this week as well but the hearsay about the USD loosing it’s status of reserve currency is exaggerated.
On one side China’s speeches conveying concern about the USD, on the other side China augmented its acquisition of US debt by twenty-billion during the summer and it lifted its possession of US debt close to $800 billion.
The shift in the USD reserve might glint a deflation in the China’s existing USD holdings and acquisition at the market. Around 62.8% of global reserves are apprehended in USD trade. This build a pressure over the holders of the USD and now they are thinking it more appropriate to fetch out their capital from the USD reserve as the rebalancing indicates the further rise in the risk of deflation of USD trading at the market.
The fresh thinning of the US existing account possessions increasing the pressure over USD of being depleted and the growth rate will support USD trade. US trade deficit of August thinned out greatly with the rise in the 2009 exports.
The thinning of US current account ensures fewer USD floating. US GDP is going to have stronger growth in 2010 because of strong US fiscal and economic stimulus plans and weakening USD.
The weakening USD has supported rise in export and contributed in the improvement of the US GDP growth. The third-quarter US GDP data will be released today and the market is having expectation of big profits. While the strength of EUR is a key ingredient for the EU recovery as the EU economy is fully dependent on the growth of the exports.
The article gives brief information about the USD trading position at the Forex trading platform and the anxiety of public regarding the USD growth perspective. This acknowledges about the response of other nation toward the USD weakening and the possible intentions of other nations having investments in USD trade.
USD won against race with EUR
The USD mounted against the EUR in almost two months, after the EUR failed to hit the level above 1.50 USD that indicates the USD strength. The US bonds moved higher as supply offset less risk appetite and a significant selling of five-year TIPS.
The EUR striven hard to sustain at the highest-level but just maintained to around 1.5000 trade level. The study of technical chart patterns indicates that in the near future there will be more changes in the Forex outcomes and value of currency pairs.
The lower commodity prices, restricted financial regulations, and its influence on the earning of the banks and the Forex stock status.
However, the pair reached the support level of around 1.4792 and reached the resistance level of around 1.5010. The pair finally fined the spot rate of 1.4928.
There are expectations that the pair of USD/CAD is going to have a retracement of around 38.2%. For now, the pair is trading with the support level of 1.0561, reached the resistance level of around 1.0757, and finally stopped at 1.0629.
The good news from New Zealand is that the NZD rise made it possible to slow down the inflation rate and there is no need to increase the interest rates at this moment.
The rise in local currency trade is not the signal of economic recovery but off course, the strength of local currency will surely contribute in the benefits of the NZD.
The CPI in New Zealand increased by 1.3% during the Q3 report thus it will move on smoothly within the comfort level of the Central Bank between 1.0 to 3.0%.
The interest rates in NZ are higher than the interest rates of other trading partners and the nation is looking forward for further increase in its local currency.
These are the news about the fluctuation in the values of the currency pairs of different nation and the respective influence on the Forex trade.
This is the article giving news about the up and downs in the Forex trade and currency pair positions at the Forex trading platform.
Currency pairs hovering Forex trends
USD-USD trading was very slow in Asian session because of the RBA declaration made the AUD and EUR to reach the new heights.
The weak US stocks and the disappointing Housing start at 0.59m against 0.61m of advanced forecast. The USD hiked with the fall in equities but third quarter earnings were very strong so drops supposed to be short live.
In US stocks, DJIA stopped at -50 points closing at 10041, S&P with -6 points closed at 1091 and NASDAQ with -19 points closed at 2163.
When looking forward you will find that crude oil inventories is predicted to be at 0.9m as compared to 0.4m of previous data.
EUR- The pair falls short to reach the level of 1.5000 in Asian session and as the stock get darkened the pair fall down lower then 1.4900 and found firm support at this level.
The general forecast of German PPI dropped to -0.5% as compared to -0.1%. However, the pair of EUR/USD traded at a low of 1.4883 and at a high of 1.4995 and at last is closed at 1.4930.
JPY- The pair goes long against the USD and as most pairs hiked due to risk aversion and traded well. USD/JPY falls lower in Asian session after remarks from FinMin Fujii that the easy fiscal policy is responsible for weak
USD. The USD/JPY traded at a low of 90.08 and at a high of 91.07 and finally closed at 90.70 in the New York session.
This is the Forex currency report giving information about the trading positions of different currency pairs in Asian and New York trading session.
The article gives brief idea about the different price movements of the currency pairs at different Forex session.