Emerging market currency tradingIn emerging market currency trading, the Mexican peso is doing well on the FX market right now. Inflation means there are signs of an expanding economy, and that should support the peso in forex trading. Bloomberg reports on the emerging market currency:
The central bank unexpectedly raised its benchmark rate a quarter-percentage point to 7.5 percent and said inflation will take longer to retreat than policy makers previously estimated. …
Mexico’s peso rose 0.7 percent to 10.7345 per dollar.
S (more…)
Currency trading with the sterlingThe U.K. pound is still gaining against the U.S. dollar in forex trading on the currency market. In currency trading right now, the main support for the sterling is in the interest rate differential. Even if the BOE cuts rates in the future, the differential will still be rather wide, especially since a Fed rate cut is expected tomorrow. Bloomberg reports on the U.K. pound in forex trading:
“The market mindset is that the Fed will continue to cut rates, while in the euro zone and the U.K. there’s no certainty in that re (more…)
Sterling drops in forex tradingThe U.K. pound fell against the euro today in forex trading, as interest rate concerns return. British economic data, including a decline in mortgage approvals, continue to show that the economy is slowing. The BOE is considering cutting interest rates, and this is weighing on the sterling in forex trading. Bloomberg reports on the U.K. pound on the FX market:
“The key in the currency markets is deciding which central bank is going to cut first,'’ said Adam Myers, director of market strategy at Credit Suisse Group in Londo (more…)
Currency trading with the greenbackThe U.S. dollar is dropping on the FX market, thanks to weak economic data. The likelihood of a Fed rate cut next week is getting greater as currency trading with the greenback responds. Reuters reports on dollar weakness in forex trading:
"It’s still very difficult to find any supporting factors for the dollar … Everybody is convinced that we are getting a (U.S. rate) cut of 25 basis points, and some might even speculate whether the Fed could move by 50. We had weak data just adding to that speculation yesterday (more…)
