Forex Update 23 November 2012

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Financial Spreads: Spread Betting and CFD Trading


Forex Trading: 23 November 2012

In currency spread trading, the EUR/USD pair edged higher as it was helped by PMI data from the Eurozone and maintained confidence that a Greek deal will be struck.

The single currency has enjoyed some good strength this week, along with several other risk assets, but it has failed at the $1.2900 level this morning and is currently standing at $1.2885.



Forex Trading: 22 November 2012

The euro/dollar gained about 30 points on Wednesday, settling at $1.2854.

The rise was fuelled by renewed hopes for a meeting on Monday between European finance ministers.

The single currency now looks forward to this morning's Eurozone PMI data and, at the time of writing, is trading at $1.2845.



Forex Trading: 21 November 2012

Forex spread traders have remained on the sidelines. Understandably it looks like they are waiting for further developments from the Eurozone's finance ministers meeting with regards to a new round of help for Greece.

The result was that the euro was near unchanged at $1.2818 yesterday. However, overnight it was announced that the European officials failed to reach an agreement. That immediately triggered a selloff in the shared currency, the EUR/USD market is now back in the mid $1.2700 region.



Forex Trading: 20 November 2012

European finance ministers met in Paris to find common ground on the next bailout package for Greece, fuelling speculation that the troubled nation will get help sooner rather than later.

This spurred buying in the shared currency, which gained 62 points against the dollar to $1.2809.

Nevertheless, Moody's soon downgraded France's credit rating from AAA to AA1 and the euro was back under pressure.



Forex Trading: 19 November 2012

A stalemate between President Obama and the Republicans pushed investors into the safety of the US dollar on Friday.

However, even after Republican John Boehner appeared to be more optimistic about reaching a compromise, the markets' risk-off mood hardly changed.

As a result, the euro-dollar pair remained on the back foot, ending the day 34 points down at $1.2736.



Forex Trading: 16 November 2012

The Eurozone slipped back into recession as its gross domestic product dropped 0.1% in the third quarter, following a 0.2% loss for the second one.

Nevertheless, investors were in a positive mood, buying on the dips and pushing the euro 36 points higher to $1.2769.

But with record unemployment and the European Commission already downgrading its 2013 growth forecast, will the downtrend resume?



Forex Trading: 15 November 2012

The euro held its ground incredibly well yesterday, despite coordinated anti-austerity protests in a numbers of Eurozone countries.

In fact, bargain hunters helped the shared currency rebound 31 points against the US dollar to close at $1.2731.

Unfortunately, the Eurozone also saw its industrial production slump by more than anticipated, confirming that the near-future looks bleak.



Forex Trading: 14 November 2012

The European finance ministers failed to agree on how to address Greece's financial needs and postponed the conclusion for next week.

At the same time, IMF Chief Christine Lagarde seems to have a different view of how to tackle the debt troubles and this is not helping matters either.

As a result, it was little surprise to see the euro losing ground on the FX trading markets, reaching another recent intraday low at $1.2661.

Having said that, a late comeback did pare some of the losses, with the EUR/USD pair finishing just 8 points down at $1.2702, and the single currency is a little perkier this morning at $1.2730.



Forex Trading: 13 November 2012

Although European leaders have maintained their stance of helping Greece remain solvent, they don't look to be in a rush to deliver, despite ongoing street protests in Athens.

As a result, the forex spread trading markets saw the shared currency trade near its recent lows against the dollar yesterday, closing 5 points down at $1.2710.

The euro continued its falls overnight, dropping below the $1.2700 mark, and seems poised to stay under pressure in the short-term.

That pressure is playing out this morning, with the short-term EUR/USD chart showing a firm downward trend, as the pair currently trades at $1.2675.



Forex Trading: 12 November 2012

The shared currency showed no sign of interrupting its plunge against the US dollar, losing 40 points on Friday to reach $1.2709.

In the process, the euro also touched $1.2689, its lowest level for two months.

There are now growing concerns among investors that the European economic outlook is worsening despite the potentially unlimited quantitative easing announced by the European Central Bank.

This morning, things have been quiet on the currencies CFD trading front and the EUR/USD remains at the same level it closed on Friday.

Near-term support and resistance is seen at $1.2690/70/35 and $1.2745/75/1.2810 respectively.


By Simon Denham, 23 November 2012


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