The US dollar weakened after the employment report came out worse than was expected, adding to concerns caused by the partial US government shutdown. It suggested that US economic growth was not stable even without politicians messing things up. The employment data from Automatic Data Processing showed growth of 166,000 jobs in September, which was below the forecast of 177,000. Moreover, the August increase was revised … “Dollar Weak After Employment Report”
Month: October 2013
How would a US debt default impact USD?
The political impasse in Washington and wrangles over the US debt ceiling, which is leading to a gradual shut down of the US government, is yet to seriously rattle market sentiment, but the longer it carries on the greater the risk of extreme market volatility. Already, there will be no Non Farm Payrolls number on Friday leaving … “How would a US debt default impact USD?”
Pound Mixed After Construction PMI
The Great Britain pound was mixed today, rising against the US dollar, but falling versus the Japanese yen. The construction report was the likely source of the confusion as it showed that the sectors continued to grow, but with slower pace than traders have hoped for. The Markit/CIPS UK Construction Purchasing Managers’ Index fell from 59.1 in August to 58.9 in September. The drop was small, but it still was … “Pound Mixed After Construction PMI”
Euro Jumps with Help of ECB & Letta
The euro climbed today against the US dollar and the Great Britain pound after the European Central Bank left monetary policy unchanged and Italy avoided political crisis. The currency also pared losses versus the Japanese yen. The ECB kept its main interest rate at the record low level of 0.5 percent. President Mario Draghi said in the press-conference that monetary policy will remain accommodative for a long time: Looking ahead, our … “Euro Jumps with Help of ECB & Letta”
Core Liquidity Markets Introduce New Pricing Structures for Traders
Core Liquidity Markets (CLM), launches a new pricing plan for both institutional and individual traders: lower spreads and a leverage of 100:1 for forex. For more details, here is the official press release: Sydney, Australia — Top trading company CLM provides two new pricing plans for active individuals and company clients; featuring Core Plus And … “Core Liquidity Markets Introduce New Pricing Structures for Traders”
The typical market cycle
Good traders know that financial markets are naturally interconnected with one another which means that what affects one asset class will nearly always have an effect on the other. And one of the main drivers in markets has been and will continue to be the stock market, since it is arguably the market that is … “The typical market cycle”
USD/JPY: Trading the ISM Services PMI Oct 2013
The ISM Non-Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the services sector. Respondents are surveyed for their view of the economy and business conditions in the US. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes … “USD/JPY: Trading the ISM Services PMI Oct 2013”
This’s Why Hedging Is So Risky in Forex Trading
In forex trading, hedging technique refers to buying and selling one forex pair at the same time. To protect their capitals, traders employing normal one-direction trading will cut loss absolutely, while traders employing hedging technique will drive their equities by continuously adding and removing positions in both long and short directions. For an imaging expression, … “This’s Why Hedging Is So Risky in Forex Trading”
Aussie Suffers from Unexpectedly Poor Reports
The Australian dollar edged down today as surprisingly poor economic data reignited speculations about potential interest rate cut from the central bank as recovery does not look stable enough yet. Building permits slid 4.7 percent in August on a seasonally adjusted basis following the 10.2 percent increase in July. Experts have expected much smaller decrease by 0.7 percent. The trade balance deficit shrank by A$560 million to A$815 … “Aussie Suffers from Unexpectedly Poor Reports”
Dollar Posts Gains, Remains in Danger
The US dollar posted gains against other major currencies, including the euro and the Great Britain pound (but excluding the Japanese yen), today. The currency remains in danger from the impact of the US government shutdown. The dollar got boost from positive macroeconomic data. The Institute for Supply Management Manufacturing Purchasing Managers’ Index rose from 55.7 percent to 56.2 percent in September. Analysts were surprised as they were expecting a drop to 55.3 … “Dollar Posts Gains, Remains in Danger”