Euro is struggling today, once again lower as forex traders consider the state of the eurozone economy. Additionally, general risk aversion is also weighing on the euro as economic jitters set in and forex traders look for safe haven. EUR/USD is back below 1.3200, and EUR/GBP looks for direction. Euro is taking a hit today, heading lower as economic data disappoints. One of the biggest factors in the lower euro, though, is the German … “Euro Struggles on Disappointing Data”
Month: March 2012
Risk Aversion Sends Dollar Index Higher
Concerns about the economies of different regions are weighing on riskier assets today. Indeed, risk aversion is on the rise again, and that means Forex traders are looking for safe haven. The result is a higher dollar, with the dollar index gaining today. US dollar is higher against most other majors, although it is lower against the Japanese yen. Forex traders have been awaiting economic data, … “Risk Aversion Sends Dollar Index Higher”
EUR/USD: Trading The New Home Sales
The US New Home Sales report is a leading indicator of housing activity. The indicator is released on a monthly basis, and helps analysts track consumer spending. A higher reading than that expected by the market is bullish for the dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday … “EUR/USD: Trading The New Home Sales”
Won Drops as China’s Manufacturing Slows
The South Korean won fell today on concerns that the economic slowdown in China may negatively affect the Asian region as a whole. As of now, the currency pared some of its losses. Preliminary report from Markit Economics showed that China’s Purchasing Managers’ Index fell from 49.6 in February to 48.1 in March, the lowest level in 4 months. A number below 50 indicates contraction. The won pared its losses as South Korean exporters … “Won Drops as China’s Manufacturing Slows”
Head and Shoulders Forming on EURUSD
We visit the EURUSD daily chart and noticed a head and shoulders pattern in the making. A head and shoulders pattern looks like a human head with 2 shoulders on either side. The shoulders are lower than the head and are often of equal height to each other. The blue line extending horizontally across is … “Head and Shoulders Forming on EURUSD”
Yuan Rises as China Eases Regulations
The Chinese yuan advanced today on the speculation that nation’s policy makers may ease regulations for banks to support the Chinese economy that is experiencing slowdown. The People’s Bank of China plans to ease reserve ration for banks in hopes to free funds and avoid hard landing. Analysts speculate that China’s economy has already reached the bottom and is ready for another thrust to the upside. Additionally, economists believe that Chinese policy makers … “Yuan Rises as China Eases Regulations”
The Situation in Europe Remains Very Fragile
The launch of the second Greek bailout may only be a temporary reprieve in the European debt crisis. The focus is shifting to the Iberian peninsula and it will only take a few poor pieces of data to reignite contagion, says Christopher Vecchio of DailyFX. In the interview below, Vecchio discusses the situation in the euro-zone, the … “The Situation in Europe Remains Very Fragile”
Canadian Dollar Softens Against Dollar as Risk Aversion Returns
Canadian dollar is softening against the US dollar today, after seeing some earlier gains. Now, though, risk aversion is returning to the financial markets, and loonie is heading lower. Canadian dollar, however, retains many of its gains against the UK pound, which is embattled today. Loonie saw support earlier today from higher commodity prices. Oil prices, which dipped lower on the news that … “Canadian Dollar Softens Against Dollar as Risk Aversion Returns”
UK Pound Drops on Government Borrowing
UK pound is struggling today, dropping on the latest figures related to government borrowing. As the government prepares to share its new budget, it’s clear that there isn’t going to be much room for stimulus. The news has the sterling heading lower against the euro and the US dollar today. Borrowing figures for the British government show that, year-to-date in February, the UK government has borrowed 110 billion pounds. The news came as public … “UK Pound Drops on Government Borrowing”
Won Drops as China Reduces Appeal of Risky Assets
The South Korean won slid today as global equities declined on concerns that China’s economic slowdown sapped demand from riskier assets of emerging economies. Nowadays, one of the major themes in news is the economic slowdown of China. Indeed, Premier Wen Jiabao stated that the growth target is 7.5 percent for this year, while it has been 8 percent for the last several years. Additionally, North Korea threatened … “Won Drops as China Reduces Appeal of Risky Assets”