Euro Struggles With 1.3000 Pound Holds 1.44000

Another rambling night of trade in the currency market as the EUR/USD struggled with the 1.3000 handle after staging a reversal in North American session yesterday. Better risk appetite and the growing political woes of the Obama administration helped fuel Tuesday’s rally, but the unit could not hold its gains as dour economic data and [...]

GBPJPY analysis – British Pound Dominates Against the Majors on Massive Retracement – Can This Continue?

The British pound was the strongest of all the majors not only on Friday, but during the entire week, as the currency trades in a highly speculative manner. Indeed, over the past 5 days, the British pound has rallied 8.6 percent against the New Zealand dollar and roughly 6.3 percent against the euro and Japanese [...]

US Dollar: 3 Big Threats

The US dollar continues to rise, but the rally is tempering. After sharp losses this past week, the Euro, Japanese Yen and Australian dollar are beginning to stabilize against the greenback. US equities have been in the red throughout the day, which is why most currencies remained negative despite sharp intraday reversals. Over the next [...]

Obama’s New Strategy on China is USD Negative

The US dollar and the Japanese Yen, the two lowest yielding G10 currencies continue to be the two best performing. It is important to remember that the dollar and the Yen are not rallying because investors have grown more optimistic about those currencies but because they are more pessimistic about the outlook for the US [...]

Pound’s recent drop against Euro and Dollar heads for further weekly decline

Thursday was a generally calm day as traders appeared to become weary of hearing the constant barrage of bad new and economic data. Asia showed that it is very much a part of the global problem with South Korea announcing a 5.6% contraction, the Bank of Japan forecast 2 years of deflation and there were [...]

UPDATE 3-Rouble firm, devaluation course still unclear (The Forex Market)

MOSCOW, Jan 21 (Reuters) – Russia’s rouble held onto gains on Wednesday after Tuesday’s big rally, but analysts attributed the strength to demand for cash to pay taxes and said it was too soon to call an end to months of devaluation. Read more….

Why The Rally May Continue

The price action in the currency markets over the past 2 trading days indicates that investors may be growing less pessimistic. Although US economic data continues to disappoint, investors are starting to become immune to the weak economic data. So much of the bad news has already been priced into the markets and therefore investors [...]