Falling European stocks affect the FX market
The euro is dropping dramatically in currency trading on the FX market against the Japanese yen. Risk aversion is on the rise, due to struggling European stocks. This means that the yen carry trade is falling out of favor, and this is giving the yen a boost in forex trading. Even though the euro reached record highs yesterday, today is another story as the 13-nation currency falters against all major currencies. Bloomberg reports on the euro’s disappointing performance in currency trading on the FX market:
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Impetus to buy either on the currency market fades
With U.S. economic data looking a little better (and a lot more of it to come today), the U.S. dollar appears to be making some strides in currency trading on the FX market. It is gaining against both the Japanese yen and the euro, and expected to strengthen a little. Against the euro, though, looms a currency trading stalemate. Ian Copsey tells Forbes that there is little reason to buy either the U.S. dollar or the euro in forex trading on the currency market:
‘With the subprime problems in the US, there (more…)
Forex trading on the currency marketThe other major currencies are rising against the U.S. dollar in forex trading on the currency market. The subprime lending crash, coupled with continued dubious economic data is leading to dollar weakness due to interest differentials. Reuters reports on the major currencies rising against the U.S. dollar in currency trading:
The euro climbed to a historic high of $1.3833 <EUR=> before trimming gains to stand at $1.3807 by 0723 GMT.
Sterling rose as high as $2.0548 <GBP=>, acc (more…)
Monetary policy suspension threats largely ignored in currency tradingNew Zealand’s Finance Minister, Michael Cullen, is pointing out that he has the authority to suspend current monetary policy in an effort to slow the ascent of the kiwi in forex trading. The New Zealand dollar continues to rise on the FX market on interest rate speculation, and there appears to be little that can be done to slow the rise. Stuff.co.nz reports on the drivers behind the kiwi in forex trading:
The NZ dollar became even more popular with speculators after strong in (more…)
