Category: Forex News

Russian Tensions Upset Markets Ahead of Labor Day Weekend

A bit of mixed data overnight was largely ignored as Russian & Ukrainian tensions seeped back into the headlines. European stocks dropped from summer highs and gold and other safe havens climbed as the U.S. said Russia has probably sent troops to fight in Ukraine. This report of Russian troops comes on the heels of a new hacking investigation by the FBI against banks including J.P. Morgan; likely authorized by the Russian government to combat western sanctions. The euro was the biggest loser against the dollar, only falling by a modest 0.20%.

While Asian stocks turned red following the breaking Russian news, it was quiet on the data calendar with only second tier Australian housing data released. The AUD and NZD are rising slowly this week but ranges remain tight for both currencies trading at 2014 lows. In Europe, we had an eclectic mix of Spanish and German releases headlined by German inflation, which just missed the mark for August at no rise over last month. Spain slipped deeper into deflationary territory as August inflation fell below at expectations at -0.5% mom. Spanish GDP continues to rise, hitting +1.2% for Q2, but that was unable to drum up any optimism as Russian headlines smacked risk appetite.

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US Q2 growth revised to 4.2% – USD slightly stronger

US Q2 growth revised to 4.2% – USD slightly stronger

Good news from the US: GDP growth was revised from 4% to 4.2% in Q2. Jobless claims are under 300K at 298K. The US dollar responds positively, but the moves don’t go too far. The US was expected to revise down the growth rate from strong 4% originally reported to 3.9% now, but the strong

German inflation stands at 0.8% as expected in August

German inflation stands at 0.8% as expected in August

No surprises from Germany on inflation: it remains low at 0.8%. German inflation was expected to stand at 0.8% in August, just like in July. Month over month, no change was expected. These numbers are relevant for both the German CPI and the HICP, which is the harmonized version. EUR/USD traded around 1.3180 before the

Ukraine says Russia invaded – EUR down, CHF, JPY up

Ukraine says Russia invaded – EUR down, CHF, JPY up

It’s been going on on the ground for quite some time, but now Ukraine cannot ignore it and says that Russia has invaded. Ukraine president Petro Poroshenko announced it, cancelled a trip to Turkey and called for an urgent meeting of the security council. Safe haven currencies, the Swiss franc and the Japanese yen are in

EUR/USD Aug. 28 – Almost closes the gap ahead of busy day

EUR/USD Aug. 28 – Almost closes the gap ahead of busy day

EUR/USD managed to recover back to the top of the range, riding on the sell off of the dollar, a move that looks like a necessary correction. A busy day awaits traders on both sides of the Atlantic with German inflation numbers and the second estimate of US GDP. Will EUR/USD break higher or could it bounce

Can NZD/USD Continue Trading Higher?

Can NZD/USD Continue Trading Higher?

The New Zealand dollar traded lower during the last couple of weeks against the US dollar, and recently traded as low as 0.8310. However, the NZDUSD pair has somehow managed to gain bids and is trading a touch higher Intraday. There was no economic release in the New Zealand, but the ANZ Business confidence will

Spain digs deeper into deflation: -0.5%, worst since 2009

Spain digs deeper into deflation: -0.5%, worst since 2009

Spain, the euro-zone’s fourth largest economy, reported a year over year drop of 0.5% in prices, the worst since 2009. The previous read was a drop of 0.4%. This implies a weaker euro-zone CPI tomorrow. See how to trade the euro-zone CPI with EUR/USD. The event could be critical for the ECB decision. EUR/USD seems

Financial Markets in Limbo Ahead of Month-End

Financial Markets in Limbo Ahead of Month-End

The economic data calendar from around the globe remains sparse as we approach the half-way point of the trading week, though action will begin to pick up as we get ready to close out the month of August and the end of the week.  Yesterday’s close above the important 2,000 line for the S&P was enough

USD/CAD: Weakens, Targets The 1.0850 Level

USD/CAD: Weakens, Targets The 1.0850 Level

USDCAD: With USDCAD selling off strongly, further downside is likely in the days ahead. On the downside, support lies at the 1.0850 level followed by the 1.0800 level where a break will aim at the 1.0750 level and then the 1.0700 level. Its daily RSI is bearish and pointing lower supporting this view. On the

EUR/USD Aug. 27 – Marks lower range in ongoing erosion

EUR/USD Aug. 27 – Marks lower range in ongoing erosion

EUR/USD is getting comfortable in a lower range below 1.3175, after yet another slide. It seems there is no mercy for the pair. After seeing very strong consumer confidence from the US yesterday was the latest excuse to buy the greenback. Today’s light calendar also supports that direction, with more disappointments from Germany. What’s next?  Here