Forexyard Analysis

[forexyard]

EUR Soars Versus the USD

The EUR experienced a bullish day of trading yesterday, mainly due to the European Consumer Confidence figures, showing its first month on month rise in 11 months. This added to the news from across the developed economies from the U.S. to Japan that the worst of the global economic recession may be over. The bullish equity markets in the Euro-Zone and in Britain were partly due to that of the U.S., partly due to the upgrade of British banks by brokers, and the fall in demand of safe-haven currencies. The EUR made its most notable gains against the USD in Thursday’s trading.

The EUR gained about 130 pips against the Dollar in Wednesday’s trading as demand for safe-haven currencies plummeted as the global economy begins to pick up. The pair closed at the 1.3322 level. The EUR/JPY cross rose by an impressive 210 pips to 129.90 as demand for the most safe-haven currency of all as of late plummeted as indicators from Japan showed that her economy had improved in April. Against the Pound, the EUR did make marginal gains as fears of a prolonged European recession dissipated slightly. The pair closed up 15 pips at 0.8980.

Looking ahead to today, the Euro-Zone and Britain are set to publish a number of important data releases. These include the British Nationwide HPI at 6:00 GMT and the Euro-Zone Unemployment Rate at 21:00 GMT. These figures are likely to determine the GBP and EUR’s strength going into end of week trading. Forex traders are also advised to closely follow statements coming from U.S. President Barack Obama and the U.S. Federal Reserve, as the forex market is likely to be very volatile to this.

 

[forexyard]

Yen Plummets as Economy Improves

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The Yen plummeted yesterday against its major currency pairs as the current economic recession in the world’s second largest economy seems to be bottoming out. The JPY slid over 60 pips Yen to 97.54 Yen per Dollar as the Yen’s demise was compounded by strong U.S. consumer confidence figures. Thus the most safe-haven currency as of late plummeted as a result of both improvements in Japan and America’s economy. The JPY also slid against the EUR, dropping a massive 210 pips to finish the day’s trading at 129.90. The Pound also made inroads into the JPY as the confidence of the U.S. equity markets swept Europe, and reduced demand for the safe-haven JPY.

As the Japanese equity markets reopened yesterday after a bank holiday, shares soared as the global economy showed signs of bottoming out. This is following good U.S. Consumer Confidence figures from Tuesday, European Consumer Confidence figures from yesterday, and positive Japanese data releases on Wednesday. The bearish JPY yesterday was compounded by impressive factory production figures, showing their first increase in 6 months. All these factors helped pour investors away from the Yen and into the riskier equity market. Today, the Household Spending and Unemployment Rate figures are likely to help determine the JPY’s strength in late trading. The USD/JPY could break the 98.00 resistance level by the end of today’s trading.

 

[forexyard]

Forexyard analysis - The Greenback is Trending Lower on Global Recovery

The U.S. dollar approached a 3 week low against the EUR as better economic data worldwide saw investors grow increasingly confident that the worst in the global economy may be past, boosting risk appetite. The Dollar recent losses however, may be tempered before the Federal Reserve and U.S. banking regulators reveal the results from stress tests on the nation's 19 biggest banks this week. The results of the U.S. banks' stress tests may pose downside risks for the markets, and as such, the dollar may garner support as a safe- haven currency.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard Analysis - Increased Optimism sets the Tone for Trading

For the year thus far, the S&P 500 index is in positive territory. With this news the price of Crude Oil has also risen to its yearly high. However, the added buoyancy is hurting the Dollar as traders are taking on greater risk with higher yielding currencies and swapping out their safe-haven investments.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard analysis - Dollar Breaks Losing Streak

Buying of the Dollar resumed yesterday as equities finished lower and the U.S. economy showed better than expected manufacturing data. Traders are allocating their positions accordingly as the markets prepare to absorb a glut of economic news in the coming days which may create a level of heightened price volatility.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard analysis - Interest Rate Decisions in Europe to Lead Today's Market!

The hottest news available in today's market will no doubt be the interest rate decisions by the Bank of England (BoE) and the European Central Bank (ECB) today at 11:00 and 11:45 GMT, respectively. As interest rates are one of the primary tools used to value a nation's currency, the impact of these announcements will likely push the GBP and EUR to new extremes in the minutes after they are announced. Today will be an important news-trading day for forex traders!

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard analysis - Dollar Expects High Volatility Today

Today, traders should pay close attention to the release of the U.S. Non-Farm Employment Change report. This indicator always provides for extreme market volatility in the major currency pairs. Traders may find good opportunities to enter the market following this vital announcement at 12:30 GMT.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard analysis - USD Weakens and World Economies Strengthen?

Last week may have signaled a change in the Dollar's value against the major currencies. If you remember, the EUR/USD was traded almost at the 1.6000 level before the financial crisis outburst, and once it did, the EUR/USD dropped to almost 1.2200. The rally of all the major currencies against the Dollar could be the starting point for the idea that the forex market is finally correcting itself. Could we be seeing a return to market optimism?

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Gold Fever

For those of you who chose to focus their investments on the commodities market, it seems that Gold could be the best choice in a long time. Recently, an ounce of gold is being traded for over $900. This only shows that gold will probably keep its value, and all the most sophisticated financial instruments won’t stop it. Human desire for the shiny stone is probably beyond logic and reason, and this is why only three years ago an ounce of Gold was valued at around $650.

Now take a moment and think about the economic crisis we’re all experiencing at the moment, which came directly as a result of these super-sophisticated financial instruments, so sophisticated that they cost us all our life-savings, and imagine that Gold has increased value by 150% in 3 years, and that’s even without any use of leverage. After you do that, try to remember that because Gold is such an old fashion investment it is almost impossible that it will lose its value the way your trust funds did over the past year.

Now for those of you who are trading Gold right now and looking to find reasons for Gold’s recent bullish trends: here they are.

It appears that Gold is appreciating on inflation concerns. This is how it happens, investors are sensing that global banks around the world will continue to inject money to the people in order to revive their economies. As a result, as your newspapers surely mentioned once or twice, inflation increases. As currently, stock markets and the different financial tools seem very risky, investors are using gold as a potential hedge from the advancing inflation.

In addition, as you all know, Gold is valued in U.S Dollars. Over the past few days the USD saw strong bearish movements against all the major currencies. This kind of thing has a very quick reaction on the commodities as well, and the value of Gold was influenced by that as well.

I hope I helped you understand that it doesn’t matter how advanced your investment is, but how much profit you will earn from it.

 

[forexyard]

Forexyard analysis - Forex Markets Steady as Stocks Dip

The most notable event to take place in the forex market yesterday appears to have been the lack of any significant movement by the major currencies. As stock markets witnessed a downward correction yesterday, the forex world's latest series of volatile spikes came to an end and most currencies leveled-off. As market news today is anticipated to be much busier, this day of rest in forex may come to an end and we could see a return to the sharp movements witnessed at the end of last week.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard Analysis - Dollar tumbles to a 4 month low

Growing optimism about the easing of the financial crisis is leading trading. Pay attention today to the releases of the Core Retail Sales and Crude Oil inventories to see if the trend continues. Positive news from the U.S and increase in the oil prices will further hurt the Dollar's appeal.

More forex trading news and full forex analysis of today at our forex news center

 

[forexyard]

British Manufacturing Production – May 2009

Earlier today on Tuesday 12 May at 8:30 GMT the British Manufacturing Production figure was released. The release measures the total alteration in the real value (inflation adjusted) of output that is produced by British manufacturers. The release is important as it measures around 80% of industrial production in Britain. It is one of the data releases that are used to measure the health of the British economy. It is often correlated with unemployment and consumer confidence. The actual figure was -0.1% from the previous month, which was significantly higher than the forecasted -0.8%. As a result this sparked a rally in the British Pound in Tuesday’s trading.

The Pound made significant gains against the USD, EUR, and CHF. In evening trading the GBP is already up by over a dramatic 150 pips versus the USD at 1.5265. Against the European currency, the Pound is up by 65 pips at 0.8932. The GBP also made significant gains against the Swiss Franc to stand and stands at 1.6878, an increase of 130 pips. It seems that prior to the release of the impressive figures, the Pound was already going in a positive direction. However, the release of the figures helped investor’s confidence pour into the Pound. The reason why the Pound continued to strengthen throughout the day may have been also due to better-than-expected Claimant Count Change figures that were released just after midday.

As for the Manufacturing Production Index in the coming month, a lot depends on the health of the region as a whole. Additionally, there must be continued signs of improvement in the British economy. This needs to be shown in employment and earning figures. Furthermore, Chancellor of the Exchequer Alistair Darling needs to show that he has the ability to turn around the British economy. So far, he has been unable to prove this to the British public. The positive British data releases today may help the Pound continue to strengthen into mid-end of week trading. However, the British economy as a whole will need to show that it is strong enough to support a bullish Pound in the short-medium term.

 

[forexyard]

Forexyard analysis - Dollar Volatility To Lead Today's Market

Today the U.S. economy is going to be in the driver's seat of today's market, whilst the Euro-Zone currency will take more of a backseat. Traders should pay close attention to the U.S. unemployment data and President Obama's economic reforms, as these 2 factors are expected to have the biggest impact on the optimism in the market in today's trading.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard analysis - Oil Goes Bullish on Weak Dollar

Oil prices reached over $59.50 a barrel yesterday, an increase of a whopping 4%. It seems that the OPEC production cuts have worked. Traders should also take into account that the Crude prices were also fueled yesterday by bullish stock markets and a weak Dollar. The price of Crude Oil is only likely to increase further today if the U.S. and Euro-Zone continue to show optimism, and the Dollar continues its bearish run.

Read the complete in depth forex analysis of today at our forex news center

 

[jeffsmith]

There has been a come back of skepticism on stock trading and the market is reacting in conditions of a bounce back in the USD and the Stockholm-based SEB currency.

 

[jeffsmith]

The world financial system is in a tremendously doubtful mode at the moment, irresolute between the hope and optimism that the global financial system may be over the most horrible and the information that "bear market rallies in a recession are the rule not the exception".

 

[forexyard]

Forexyard analysis - A Busy News week Promises High Volatility

The dollar was slightly more volatile over the past week than usual, and the explanations for this have been getting trickier by the day. As for this week, forex traders are advised to take positions on trades, as a string of data releases coming out of Europe and Japan are likely to affect the greenback's main currency crosses.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

Forexyard Analysis - Safe Haven Currencies Tumble as Optimism Returns

An increase in optimism led by a bullish stock market as well as positive comments made by U.S. Treasury Secretary Timothy Geithner yesterday led to an increased demand for riskier currencies. Expect a busy news day today, with important news coming from the U.S, Euro-Zone and Japan.

Read the complete in depth forex analysis of today at our forex news center

 

[forexyard]

USD/SEK - This Week’s Pick!

• The chart below is the USD/SEK 4-hour chart by ForexYard.

• The technical indicators used are the Fibonacci Retracement, the MACD and the RSI.

• It appears that an “M” shape is being formed on the chart itself, with the potential of reaching the 7.7000 level.

• The Fibonacci Retracement shows that the next significant support level is located just above the 7.7500 level.

• There is a bearish cross on the MACD which signals that the trend is currently down.

• A decreasing trend of the RSI suggests that the upcoming progression will be bearish.

 

[forexyard]

Forexyard Analysis - Economic Growth Boosts Risk Appetite, Commodity Prices

These past several weeks have seen a series of positive economic data emerging from various economies. Even a record contraction in Japanese GDP was anticipated and the market impact was minimal. As market optimism takes hold, safe-haven assets such as the USD begin to weaken. Traders have witnessed recently as the greenback has lost strength to most other currencies, and commodity prices have begun to climb back to 2007-2008 price levels. Is the recession coming to an end?

Read the complete in depth forex analysis of today at our forex news center