Currency trading with the greenbackThe U.S. dollar is showing some signs of life in forex trading on the European currency market. The AP reports that the U.S. dollar is mostly higher on the FX market this morning:
The euro traded at $1.4615, down from $1.4673 late Thursday in New York.
Other dollar rates:
_107.50 Japanese yen, up from 107.00
_1.1049 Swiss francs, up from 1.1003
_1.0272 Canadian dollars, down from 1.0299
The British pound was quoted at (more…)
Bank of Canada expected to cut ratesThe Canadian dollar, while holding steady against the U.S. dollar in currency trading on the FX market, is dropping against other major currencies. The Canadian dollar is being affected by the U.S. economy, slowing down and weakening the loonie in forex trading. Bloomberg reports on the Bank of Canada and the expectation that it will cut rates:
“The Canadian economy cannot escape the impact of a slowdown in the U.S,'’ said Nick Bennenbroek, head of currency strategy in New York at Wells Fargo & Co.See Also (more…)
Risk aversion in currency trading on the FX marketThe story today in currency trading on the FX market is risk aversion. As global stock markets plunge, the carry trade unwinds, changing the landscape on the currency market. Reuters reports on the yen in forex trading:
"There is a panicky environment in the equity market … this is leading to risk aversion increasing and the carry trade is now a thing of the past meaning there is continued strength in the yen," said Audrey Childe-Freeman, European economist at CIBC.See Also (more…)
Interest rates expected to remain steady in the euro-zoneEven though the euro is down slightly against the U.S. dollar in currency trading on the FX market, it is expected to recover on rate differential. The U.S. has slashed its rates, while the euro-zone has kept its rates steady since June 2007. Forex trading should consider this from ECB governor Jean-Claude Trichet, as reported by AFP:
"Also important is for the central bank to ensure an orderly functioning of the money markets at the level of interest rates required for anchoring the inflation (more…)
