Forex Markets

The most important event of the night was China’s central bank raising its required banking reserves ratio. This move caused investors to unwind their previous day’s Yen selling positions resulting in the USDYEN climbing by over 60 pips to its current 91.30. After the markets decided that China’s...

The US Trade Deficit has just been posted registering a rise to $36.4 Billion against expectations of $34.6B. Deeper analysis showed that exports to China increased to new highs of $7.3 billion but that the fewest barrels of oil were imported since February 1999. During the night, official remarks...

The EURUSD spiked higher during the night climbing to 1.4540 before retracting to its present 1.4520 (see hourly chart). The dollar has been under pressure since the release of the disappointing Non-Farm Payroll figure last Friday that reported further US job losses of 85k. The dollar’s problems...

Statements from the new Japanese Finance Minister caused the YEN to plummet against other major currencies overnight. He commented that Japanese firms preferred the USDYEN at about 95.00 and that efforts will be made to bring the pair to this desired level. After these aggressive remarks, the...

The YEN weakened against both the Dollar and the Euro during the night with the USDYEN rising by over 100 pips to highs of 92.50 whilst the EURYEN surged even higher by 130 pips to 132.80. Both pairs have given back some ground in the last hour. Just recently, the US ADP Employment Change for...

The strength of the dollar took a dramatic reversal during the night with the EURUSD rebounding from a low of 1.4260 to its present reading of 1.4430 (see hourly chart). A consensus of expert opinion seems to be behind this development, advising caution concerning further dollar support in the wake...

The Euro managed to find some legs overnight with improving risk appetite driving the EURUSD to highs of 1.4455 (see hourly chart). Official statements out of the Euro-zone stated that there were signs that the recession were beginning to end but a double-dip risk still remained because of banking...

After the Christmas break, the EURUSD is recommencing where it left off by continuing its corrective action. The pair is presently posting 1.4385 (see hourly chart). The dollar retracted by just over 160 pips against the Euro in the last 48 trading hours of last week amidst relatively illiquid...

The EURUSD has commenced a fresh drop in the last couple of hours from overnight highs of 1.4330 to its present level of 1.4280(see hourly chart). This new movement appears to have been caused by the market’s positive anticipation of US growth and the Greek credit downgrade by Moody to A1. The...

Improvements in risk appetite allowed the EURUSD to rise overnight from its oversold levels to highs of 1.4400 before retreating back down to 1.4340(See Chart). The dollar gave ground to most of the other majors although it did climb against the Yen to its present value of 90.40. Earlier this...