Forex Update 9 November 2012

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Financial Spreads: Spread Betting and CFD Trading

Forex Trading: 09 November 2012

The European Central Bank left its benchmark interest rate unchanged at 0.75%, with President Mario Draghi acknowledging the economic outlook is getting weaker.

At the same time, he reiterated that the bond buying program is there to help the ECB and the Eurozone avoid 'extreme scenarios'.

Despite that, the euro slipped further into negative territory, losing 24 points against the dollar to $1.2742, a new low since early September.

Forex Trading: 08 November 2012

The euro weakened against the US dollar yesterday ahead of the Greek vote on austerity measures that could open the way for more financial aid.

However, as the bill on benefits cuts and raising the retirement age by two years was passed by Greek lawmakers, the euro recouped part of its initial losses.

Overall, the forex pair dropped 49 points to $1.2766, with the EUR/USD chart showing that the short-term downside trajectory remains intact.

Forex Trading: 07 November 2012

Speculation that Barack Obama would be re-elected as the US President hurt the dollar yesterday as the global markets associated him with ongoing loose monetary policy.

As a result, the EUR/USD pair rose 26 points to $1.2815 and continued to move higher in the early hours as the latest polls suggested that the Republican candidate would be defeated.

Now that the result is clear, the euro has advanced a little more, taking it to $1.2850 at the time of writing.

Forex Trading: 06 November 2012

The euro lost 31 points yesterday, closing at $1.2789, as Greek Prime Minister Antonio Samaras tried to win political support for the tough measures that could bring in the much needed financial help.

Ahead of a week that will see regime change in China and close elections in the US, investors in the shared currency were rather reluctant to commit too much.

This morning, the euro-dollar pair is languishing around its recent lows at $1.2780 and near-term support and resistance is seen at $1.2750/30/00 and $1.2810/40/60 respectively.

Forex Trading: 05 November 2012

Early in Friday's trading session, the euro started to tumble against the dollar after a European economic report indicated a contraction in the region's manufacturing for last month.

Later on, a better-than-expected US employment figure also sent financial spread trading investors into the dollar as it confirmed that the US recovery is ahead of Eurozone's.

Consequently, the EUR/USD pair fell 105 points to $1.2837 and, this morning, the market is still suffering from weakness, trading down at $1.2800.

Forex Trading: 02 November 2012

US stocks had a breath of fresh air yesterday, following a string of above estimate economic data that showed the recovery is on course, albeit at a slow pace.

Meanwhile, Europe remains mired in sovereign debt troubles and, to make matters worse, street protests in Greece, Spain and Portugal are making headlines on a regular basis.

As a consequence, the FX spread trading markets saw increased demand for the US dollar against the shared currency.

The EUR/USD pair lost 17 points to $1.2942 and is suffering from further malaise this morning as it tests the $1.2900 level.

Forex Trading: 01 November 2012

Eurozone unemployment rose to a record 11.6% in September as tough austerity measures took their toll, especially on youth unemployment which sits at 23.3%.

At the same time, inflation was seen dropping from 2.6% to 2.5% last month.

The shared currency gave back its early gains, finishing unchanged around $1.2957, amid signs that Greece is in a worse situation than previously thought.

This morning, the EUR/USD forex CFD market is a little lower at $1.2945.

Forex Trading: 31 October 2012

Despite a larger-than-expected rise in German unemployment, the euro managed to post a rebound of 58 points to $1.2960.

Investors decided to go bargain hunting after France and Germany reiterated their commitment to finding a solution for debt struggling Greece.

However, a renegotiation of the existing loans does not seem to be on the table for now.

Nevertheless, the single currency has broken the back of the upper downward trend line and is testing the $1.3000 level as I write. The next targets for the bulls are $1.3020/50/80.

Forex Trading: 30 October 2012

In the forex spread trading markets, the risk-on rally is also giving the euro a boost.

Normally, better-than-expected Eurozone data would be likely to send the single currency lower as it would mean that a Spanish bailout was less likely.

However, despite the improved GDP figure, the Spanish are still expected to ask for financial assistance at some point and this is keeping the euro well supported.

This morning, the euro/dollar pair is at $1.2940, with near-term support and resistance at $1.2880/60/25 and $1.2960/90/1.3020 respectively.

Forex Trading: 29 October 2012

Today will see a smattering of economic data, but no major market movers.

What we do have will come in the form of UK mortgage approvals and consumer credit this morning, followed by US personal income and spending at lunchtime.

It was not a favourable week for the single currency, as the EUR/USD pair broke below the $1.3000 mark, closing at $1.2933 on Friday.

Eurozone economic data continued to disappoint after news that the Spanish jobless rate is at record highs, sparking renewed protests over the weekend.

Meanwhile, Germany was also hit by a fall in business confidence, casting further doubts on the European debt troubles.

By Simon Denham, 9 November 2012

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