Forex Analysis

Online forex

This weblog brings you strategies for online trading using forex software.


July 02, 2009

Euro Pulls Back Against U.S. Dollar in Currency Trading

Euro in forex trading

The euro is falling to the U.S. dollar in currency trading on the FX market today. The euro is gaining in forex trading as China continues to say that it supports the dollar as the global reserve currency. And China does support the dollar. For now. (What China is doing for the long term is another story altogether.) For the short-term, China's continued use of the dollar will continue to provide limited support for the dollar in currency trading

Another issue affecting the euro in forex trading is economic data. Even though German employment saw some improvement, overall the euro zone is looking pretty grim. Yesterday's enthusiastic rally is being overshadowed as forex traders moderate their optimism. GFT's Boris Schlossberg reports in FX360 on the latest euro zone unemployment issues:

EZ unemployment rose to 9.5% from 9.3% projected as conditions in southern Europe deteriorated further. As we’ve stated before the risk of EZ unemployment rolls rising into the second half of 2009 remains quite high especially if German efforts at “short work week” arrangements begin to fail. Many analysts now expect the EZ rate to climb into double digits mirroring the labor conditions in US.

This renewed concern about the economy means that the U.S. dollar is once again ascendant in currency trading as a safe haven.

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Topic Tags:  Boris Schlossberg, currency trading, dollar currency trading, euro forex trading, euro zone, forex trading, FX market, U.S. dollar, unemployment

July 01, 2009

Japanese Yen Drops Against Euro in Forex Trading

Chinese demand indicates that the recession may be coming to an end

The Japanese yen is dropping against the euro in forex trading on the currency market this morning as a change appears to be taking place in the global economy. The yen, known as a safe haven currency, is being abandoned as forex traders look for higher yields in riskier currencies.

One of the main drivers behind the weakness of the yen is the fact that China is expanding its manufacturing for the fourth month in a row. This pick-up in activity bodes well for the global economy, and may be an indicator that the recession is coming to a close.

The Japanese yen is also down against the U.S. dollar and the Swiss franc in currency trading.

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Topic Tags:  China manufacturing, currencies, currency trading, dollar currency trading, forex trading, Japanese yen, recession, yen forex trading

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