Forex Daily Analysis – June 26rd 2008

Yesterday’s economic data from the US were mostly mixed. Existing Home Sales and Unemployment Claims went in opposite directions.

Since the Non-farm payrolls data is due next week, the market is concentrating on employment information, hence the disappointing Unemployment Claims figure hurt the US dollar.

Today’s traders will see the Revised Michigan Sentiment, Personal Spending, and Core PCE Price Index data.

And what happenned in the market? All the aforementioned things pushed the EUR/USD higher, touching the 1.58 mark. This was also fueled by worrying inflation data from Europe – something that might force Trichet to raise the interest rate.

Trichet’s ECB will make its call next week, something that might push the Euro above 1.60, or might send it plunging back to 1.55. Expected hike is 0.25 percent.

The British currency beat the US dollar and other currencies as well. This might have been caused by data that is expected to be published today in the UK. Current Account and Final GDP are expected.

And finally, crosses on the Japanese Yen collapsed yesterday. Poor Retail Sale and rising prices for consumers (Tokyo Core CPI) hurt the Yen.

So, this was an interesting week, but the next week promises to be much more exciting!

Forex Daily Analysis – June 23rd 2008

Starting a new week, we can see that the economic calendar is full with events. The Federal Reserve’s interest rate decision is the highlight of this week. It will happen on Wednesday, 18:15 GMT. The American interest rate is widely expected to be left untouched, but Ben Bernanke’s statement might shake the markets, which expect [...]

Forex Daily Analysis – June 20th 2008

The British pound leaped 50 pips after the retail sales surged higher surprisingly. The market had expected a 0.1 drop, and was surprised to hear about a whooping 3.5 percent, the highest in 22 years. In Switzerland, the central bank met expectations by keeping the interest rate at 2.75%. The decision came despite inflation worries. [...]

Forex Market Basic Features

The Forex market is unique, and has many interesting characteristics. This post lists all of them, and gives quick links to more elaborate information: Continuous Trading Information is available instantly, all the time High liquidity and High volume Globalization without Geography Low Trading Costs Large Leverage Influence and foul play are impossible Conclusion Those were [...]

Continuous Trading in the Forex market

The Forex market operates 24 hours a day. This is possible since trading happens on all continents. This continuity is unique, and it allows dealers to act without any time limits, to react to any development that occurs in another place on the globe. For some traders who are not experienced, this might be very [...]

Information is available instantly, all the time

Fresh economic information, and regular news affect the Forex market instantly. Sharp moves in currency pairs can be seen as the news breaks out. Quote information is transferred electronically through multinational companies such as Reuters, Bloomberg, and many more. Financial news passes through television, radio, and of course, the internet. This real time behavior (almost) [...]

High liquidity and High volume

The daily volume in the Forex market is estimated at 3 trillion dollars! This inconceivable figure is slowly on the rise. This astonishing number (3,000 billion) is divided between deals intended for payments related to import and export, and investment deals. These investment deals (or speculation) are 95% of the flow in the market. This [...]

Globalization without Geography

Contrary to stock markets and other markets, geography doesn’t play a role in the Forex market. Anyone can trade anywhere. London, Tokyo and New York City are major financial hubs. True, during the afternoon in London, when it’s morning time in New York, trading volume is highest, but trading is available around the clock. As [...]

Low Trading Costs in the Forex Market

The aforementioned high volume and liquidity brought to high competition between trade vendors. Intense competition lowered the spreads between selling and buying prices. These spreads, or margins, is the cost of the deals, and the profits of the trading agencies. The cost is one of the lowest in the international financial markets, compared to the [...]

Large Leverage in the Forex Market

There’s a very high volume and high liquidity in the Forex market. This draws many banks, investment houses and brokers into the market, thus creating competition. And, since there’s a high volume, open positions can be closed at almost any market condition. Trading agencies can offer their customers very high leverages, something that is uncommon [...]

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    Forex Crunch is a blog all about the foreign exchange market. It includes and will include: tutorials, basics of the forex market, daily and weekly forex analysis, technical analysis, forex software posts, and whatever is related to Forex. Forex Crunch aims to deal with forex trading, but with a more personal touch. More...

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