Archive for January, 2009
Dollar Yen Currency Correlation
In the fast few weeks, the forex market has seen a correlation between the US dollar and the Japanese Yen. Whenever the dollar becomes stronger, the Yen beats everybody else, including the dollar. And vice versa. Whenever the dollar weakens, like today, the Yen weakens even more. Today, despite good data from the US, the
Will Obama’s Stimulus Package weaken the Dollar?
Less than a week in office, and Barack Obama isn’t wasting any time. He’s pushing forward on all fronts, and regarding the stimulus package on particular. Despite the plan being helpful for the American economy, it will be very unhelpful for the US dollar. Obama’s $825 billion plan is huge: it is meant to help
Forex Daily Analysis – January 26th 2009
Forex trading began this week with a renewed dollar strength. Even USD/JPY went in favor of the dollar rising above 89, and now back at 88.74. EUR/USD is down to 1.2878, and USD/CHF is up to 1.1638. GBP/USD is also renewing its fall after a retraction late on Friday. It’s now at 1.3580. Will it
Forex Weekly Outlook – Januray 26-30 2009
The upcoming week in forex trading features a return of data from the US. The two major events are a new interest rate on Wednesday (probably unchanged), and the Advance GDP on Friday.Also Home Sales information will be in the limelight in America. This week, it’s New Zealand turn to slash interest rates, Canada will
Forex Weekly Wrap Up – January 19-23 2009
This was a wild week in forex trading: A strong dollar with Obama’s inauguration, the huge fall of the British pound, rumors of BOJ intervention to weken the Yen and lots of data from Canada. Here’s a wrap up of the major events in the forex market this week. Forex trading began this week with
GBP/USD Parity in 2009?
GBP/USD Parity in 2009? Yes, it sounds quite wild. While parity between the pound and the dollar never happened, the global crisis is so deep, that this is an option. GBP/USD in history The last time that GBP/USD has seen such levels was back in 1985. In September 1985, while there were riots in Brixton,
Forex Daily Analysis – January 23rd 2009
On the last day of this wild week of forex trading, the trends of the last days continue: the Japanese Yen is the strongest of currencies, beating only the dollar, which in turn makes gains against all the others. The day began with some good news from Europe: the Flash Manufacturing PMI and the Flash Services PMI
Forex Daily Analysis – January 22nd 2009
After a few days of dollar and Yen rallying, this morning began in a calm way in the forex market. Lots of data due today, that might signal new directions for forex trading. In Japan, the Overnight Call Rate stayed at 0.1% according to expectations. In the accompanying Monetary Policy Statement, the BOJ stated that it still
There is a currency that always goes up
Stock markets go up and down. During these troubled times of a global economic crisis, stocks are tumbling down. Even on the day of Obama’s inauguration, stocks went down. In the Forex market, trading is in currency pairs – which means that when a currency weakens, it loses ground to another currency. So, there’s always
Forex Daily Analysis – January 21st 2009
After yesterday’s ceremonial inauguration of Barack Obama, today is back to normal. Regular economic news will dominate forex trading. The German PPI (Producer Price Index) is expected to show a fall of 1.1%. Also from Europe, yet another speech from ECB’s Jean Claude Trichet. EUR/USD could fall more after Trichet’s speech. Britain, which saw it’s