LONDON, Jan 30 (Reuters) – The Swiss franc hit a session low versus the dollar on Friday, with traders citing option-related selling from hedge funds.

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Jan. 31 (Bloomberg) — The dollar and yen had their biggest monthly gains against the euro since October as increased evidence of a global economic slowdown increased demand for the currencies as havens during the financial crisis.

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Risk sentiment dominated the markets last week; and it will no doubt do so again next week. This is a promising trend for Japanese yen traders who are looking for volatility – and nail-biting for those that await a lasting trend.

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BEIJING, Jan 31 — Chinese Premier Wen Jiabao made a stout defence of his country’s currency policy, even as United States President Barack Obama’s administration sought to tone down its criticism over the yuan. Speaking in Berlin after meeting German Chancellor Angela Merkel late on Thursday, he said the yuan is “orientated towards market needs” and “flexible” — reiterating a long-held …

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The Canadian dollar was one of the few currencies to finish marginally higher against the US Dollar through past week?s trade. A steady stream of bearish US and Canadian economic data would have normally been enough to sink the CAD, but the Loonie held firm even in the face of Crude Oil price declines.

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The Canadian dollar was one of the few currencies to finish marginally higher against the US Dollar through past week’s trade.

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The Australian Dollar faces a triple threat next week as a heavy load of negative economic data and renewed flight from risky assets combine with bearish technical positioning to put downward pressure on the exchange rate.

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The British pound was the strongest of all the majors last week, as the currency trades in a highly speculative manner and attempts to recoup the massive losses accumulated between October 2008 and January 2009.

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Three people are arrested after drugs with an estimated street value of more than one million euro are seized in Dublin.

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The dollar rose against the euro Friday after US growth figures, while sharply negative, were better than had been feared, with the single currency also hurt by eurozone employment data.

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* Rouble hits fresh record low

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MOSCOW: Russia’s central bank vowed to defend its floor for the rouble yesterday as the currency sank to fresh record lows and its Finance Minister outlined forecasts for a year of no growth and a hefty budget shortfall.

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Over the past 6 months, being long US dollars has been one of the best trades in the currency market but as the dollar extends its gains, many traders wonder how much further it can rise. In the currency market, trends can last much longer than anyone would normally anticipate

especially if it is driven by fear. As humans, we run from uncertainty and not towards it. Risk aversion has been pushing investors into the safety of the US dollar and out of higher yielding currencies. When Main Street reads in the papers tomorrow about the slowest pace of economic growth in 26 years, their shock could turn into more selling. Next week, we also have the US non-farm payrolls report due for release. A sour mood could hang over the markets for most of the week as traders fear that another 500k jobs were lost in the month of January. The only thing that could improve risk appetite and give investors a reason to cheer would be if the Senate passes President Obama’s economic stimulus package.

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ECB president Jean-Claude Trichet has once again signalled that there will be a thorough review of monetary policy stance in March. At next Thursday’s meeting, neither an interest rate cut nor any great change in monetary policy assessment are likely. Nevertheless, the council’s position appears to be changing: initially, ECB…

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News of the worst US economic contraction in 26 years was not enough to keep the dollar at bay, as the US currency posted gains against the euro and other major counterparts to end the week’s trade. A fresh record-high in US unemployment insurance claims, continued all-time lows in interest…

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The main driver in FX remains overall investor sentiment, with stock market movements as the primary barometer of risk appetites. When stocks are up and sentiment is positive, the USD, the JPY and gold are typically sold, and when shares start falling, the USD, JPY and gold are all bought….

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Last update I wrote that “the AUDCHF is probably headed higher in wave e in order to complete the triangle. Resistance is at .79 (1/9 high). Following completion of the triangle, a drop below .6926 is expected.” The pair only reached .7745 before rolling over. Still, a drop below .7319…

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The Australian dollar is likely to face increased selling pressures over the following week as the Reserve Bank of Australia is widely expected to lower the benchmark interest rate by 100bp to 3.25%, which would be the lowest level since 1963. A Bloomberg News survey shows that 11 of the…

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The dollar and yen rose against most major currencies on Friday as the Dow Industrials stock index fell and closed at the psychological important 8000 mark. Risk appetite declined on more signs of a deepening global recession. Although the US Q4 2008 GDP contracted a less-than-expected 3.8%, the involuntary inventory…

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The US economy shriveled to end 2008, with 4th quarter growth contracting 3.8%. Consumer and business cut back on spending, the housing slump continued, exports fell, and prices tumbled amid the deepening recession. The 3.8% contraction is the worst in 26 years and follows a decline of 0.5% in the…

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