Article Summary:

Here is a collection of Forex News Updates, Other Forex Trading System Resources and Information. 
 
Wow, what a last few days I missed as I was away on vacation!  I want to thank Abe Cofnas for providing his keen market insights as I was away, and look for future contributions from Abe as well as his newsletter, which we’ll be offering shortly.
 As I sat on the [...]


Article Content:
 

 

Wow, what a last few days I missed as I was away on vacation!  I want to thank Abe Cofnas for providing his keen market insights as I was away, and look for future contributions from Abe as well as his newsletter, which we’ll be offering shortly.

 As I sat on the plane yesterday and watched the market action—apparently direct TV is the newest and greatest feature on airplanes—I couldn’t help be saddened as I was missing the action.  Sometimes, ignorance is bliss.

Nevertheless, the market has been flying, led by risk appetite and both stocks and commodities.  Today however, we are seeing a bit of pullback as weak economic data in the US has overshadowed the recent market gains.

Weaker than expected pending home sales as well as personal spending and income data have induced risk aversion this morning, but that may be reversing as dollar weakness has been en vogue as of late.

Overnight, the RBA kept rates steady in Australia at 4.5% and retail sales figures came in slightly lower than expected showing signs that growth may be slowing “down under”.

In the forex market:

Aussie (AUD):  The Aussie is lower this morning on risk-aversion after the RBA left rates unchanged at 4.5%, as inflation appears to be largely in check.  Building approvals and retail sales figures came in less than expected, adding further evidence that the economy may be slowing.

Kiwi (NZD):  The Kiwi is mixed this morning despite the risk aversion in the market.  Wages increased for the first time in nearly 2 years, showing signs that wage inflation and economic activity may be picking up.  This comes after last week’s interest rate hike to 3%.

Loonie (CAD):  The Loonie is lower despite oil prices that are higher to 81.75.  The Loonie is lower as US economic data shows weakening conditions; and the fact that Canada is tied to US economic performance isn’t helping the Loonie.

Euro (EUR):  The Euro is mostly higher, trading north of 1.32 presently.  This comes despite the fact that PPI figures fell short of expectations.  However, the fact that these figures were positive (.3% vs. an expected .4%) shows that there is still some economic life in Europe despite the austerity measures.  Speaking of, Greece passed its first budget deficit test.

Pound (GBP):  The Pound has been on a tear as of late, posting its largest winning streak in nearly 18 years!  Comments from a former BOE deputy said that the would likely keep quantitative easing in place throughout the year but will then embark on series of rapid rate hikes if recovery holds.  The Pound tested 1.60 earlier this morning, reaching a high of 1.5967 vs. USD.

Dollar (USD):  The Dollar has been just about as weak as possible as of late and is only higher against some currencies due to risk aversion.  Pending home sales figures came in WAY worse than expected showing a decrease of 2.6% vs. an expected increase of 4%.  Consumer spending and income levels did not increase last month, and factory orders came in less than expected showing a decline of 1.2%.

Yen (JPY):  The Yen is the biggest gainer of the morning primarily because of Dollar weakness.  The Nikkei was higher which is a little bit counter to recent trading as we would normally expect Yen weakness, but because the Dollar is so weak the Yen is catching a bid.  USD/JPY broke through support at 86.  Expect the intervention talk to heat up if this pair approaches closer to 85.

As I mentioned last week before I left on vacation, stocks have been moving higher because there really is nowhere else to invest for most mainstream investors.  However, those that trade the forex market know otherwise.

While the economic data here in the US appears to be weaker, the Dollar appears to be taking it on the chin.  The market is clearly stating that they do not believe in the current and future situation in the US, evidenced by recent Yen, Pound, and Euro strength.

The only thing keeping the Dollar from falling lower is the threat of the flight to safety trade from risk aversion, though it may be the case that the fear is shifting back to the US economy.

Regardless of what is happening, the forex market truly is a trader’s paradise, as the opportunities for gains abound!

Isn’t it time you learned what all the fuss is about?  Take a look at our currency trading courses here!

Want to follow these events in a free, real-time practice account?  Sign up here!

While the US government may not presently care what happens to the value of your hard-earned dollars, you certainly should!

 

 

none

———————