Forex Trading: 19 December 2014
In a sign of renewed confidence in the US economy, spread betting
investors have returned to the dollar pushing it 55 points higher against the euro to $1.2286.
However, while it appears it's just a matter of time until ECB comes up with the stimulus, an ongoing rising dollar might start to put pressure on American exporters.
How much can they take it without seriously hurting those hefty earnings coming from abroad?
Forex Trading: 18 December 2014
By acknowledging a rate hike next year, 'as early as April', the Fed supported the dollar which rose 68 points versus the euro.
At the same time, the shared currency was hurt by comments made by ECB member Benoit Coeure telling Wall Street Journal of the consensus among policy makers to add stimulus.
Forex Trading: 17 December 2014
Although manufacturing and services in the Eurozone are clearly struggling, economic sentiment in Germany surpassed expectations.
With Italy in recession and France fighting to stay afloat, falling oil prices
may not be enough for Eurozone consumers.
However, the shared currency did manage to rise 75 points against the dollar to $1.2509.
Forex Trading: 16 December 2014
Whilst the shared currency managed to move higher during the morning session, it ended the day 36 points lower against the dollar at $1.2436.
There are growing signs that we could experience a second Greek tragedy which is being reflected in the country's bond yields as the politics becomes even more complicated.
On top of that, traders remain acutely aware that this is where the Europeans have been the most vulnerable over the last few years, with a potential domino effect because of their intertwined finances.
Forex Trading: 15 December 2014
Greek bonds had a rough week as their yields rose by 200 basis points, reflecting a new crisis point on the political arena.
However, so far the contagion effects into the shared currency have been limited at best.
The spotlight is definitely on the dollar and the plunging US stock market
, with the EUR/USD pair actually rebounding 43 points to $1.2454.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Jonathan Sudaria, 19 December 2014