Forex Update 25 November 2011

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Forex Trading: 25 November 2011

The euro remains the whipping boy in the FX markets with downside pressure for EUR/USD this morning, albeit not aggressive downside pressure. The pair is at $1.3300 at the time of writing with support and resistance seen around $1.3275/40 and $1.3410/30 respectively.

Forex Trading: 24 November 2011

As far as economic data is concerned, the US closure of markets due to the Thanksgiving holiday limits the output of figures.

Spread trading investors' main focus today will therefore be on the second release of UK third-quarter GDP, due at 09:30 GMT.

Unsurprisingly the euro fell yesterday after the poor sale of German Bunds, and even managed to hit its lowest level against the dollar since October 6th at $1.3320.

It does seem though that this morning there are a few risk-hungry traders looking to pick up the euro at bargain prices, as it has bounced marginally to $1.3375.

Bear in mind that it is Thanksgiving today, and so this is likely to be playing a part in the slight strengthening we're seeing for the euro on the forex markets.

Forex Trading: 23 November 2011

The risk aversion continues to depress the euro which is hovering around its recent lows. EUR/USD is at $1.3450 at the time of writing and traders will be focusing on the PMI numbers from Germany and the EU.

Short term things still look negative from a technical point of view and support is seen at $1.3425/00 and resistance at $1.3540, $1.3615.

Forex Trading: 22 November 2011

Forex CFDs traders have displayed a reversal in sentiment and we are seeing a squeeze in riskier currencies, on the back of rating companies affirming the US's credit.

S&P, Moody's and Fitch each retained their stance even after the US Congress failed to agree on reducing the budget deficit.

Traders have also taken into consideration holidays in Japan tomorrow and Thanksgiving in the US on Thursday, so are possibly unwinding their positions.

The euro is taking the advantage and so the euro/dollar market is trading at $1.3524, with support at $1.3465 and resistance at $1.3615.

Forex Trading: 21 November 2011

With equities sharply down this morning, forex CFDs investors are also in no mood for taking risks either, so we have seen a hike in the dollar and yen safe havens.

The euro has fallen steeply against the dollar this morning, from its price on Friday at $1.3616 to its current $1.3450 level

Until the US congressional committee announce later today whether they can agree on deficit cuts, we can still expect to see uncertainty and potential weakness in the EUR/USD rate. Support and resistance is seen at $1.3425/10 and $1.3540, $1.3615/95 respectively.

Forex Trading: 18 November 2011

The euro has held up relatively well considering the weakness in the equity markets although it remains in the dog house compared to other currencies.

EUR/USD is at $1.3500 at the time of writing having drifted lower in the past few days so from a technical point of view things look negative.

Downside support over the near term is seen at $1.3425 and $1.3380 whilst upside resistance is seen at $1.3555 and $1.3600/40.

Sterling too has held up pretty well considering the weakness it suffered after the BoE's growth downgrades and the poor unemployment data earlier in the week. GBP/EUR still managing to hold onto the €1.1700 level and cable is at $1.5785 at the time of writing.

Forex Trading: 17 November 2011

The poor unemployment figures and Mervyn King's Inflation Report didn't bode well for the pound yesterday. However, this morning FX investors are moving out of the dollar, on the back of speculation that the Fed Reserve Bank of New York President's speech today will suggest that quantitative easing could be back on the cards.

So, the sterling - dollar CFDs market has been given a bit of a boost this morning and is trading up marginally against the dollar at $1.5742. The pair has support at $1.5680 and resistance at $1.5825.

Forex Trading: 16 November 2011

FX spreads markets are in defensive mode and have largely been in this mood for the last few days.

The euro is the one being targeted by traders once again as EUR/USD drifts downwards below £1.3500 to $1.3470 at the time of writing.

Support levels are being targeted by the bears with $1.3425 and then $1.3380 in focus. If any upside momentum can be found for the single currency then that might take us up to test near term resistance at $1.3555, $1.3600 and $1.3640.

The main beneficiary of the uncertainty in recent weeks has of course been the US dollar, which has risen over 4% in November.

Forex Trading: 15 November 2011

There's more economic data to come with UK CPI inflation data and then the German ZEW survey.

Inflation is expected to dip back towards the 5.0% mark with many believing this will be the peak for rising prices.

This will be music to everyone's years who have suffered years of way above target inflation, apart from the blip down during the recession. Unfortunately, however, there's still a very long way to go to get back towards the BoE's target of 2%.

Forex CFDs investors have continued their bearish stance on the euro as it is on the decline for a second day today. Merkel's comments that the Eurozone is in the worst state since WWII come just in time for those German investor confidence figures mentioned later today, expected to show their lowest in three years.

Traders all over will be extremely cautious about the single currency as it seems that, despite a few governmental changes in the Eurozone, sentiment hasn't really appeared to pick up.

As said yesterday, we should still expect short term bearishness over the euro and strength in more safe havens currencies such as the dollar and yen. The euro is trading down against the dollar this morning at $1.3600 with support at $1.3545 and resistance at $1.3720.

Forex Trading: 14 November 2011

Economic data is thin on the ground today but the week starts to get more interesting on this front tomorrow with GDP numbers from German, France and the EU.

Never before have so many people in the UK be this interested in GDP data from the continent as it could so worryingly have a knock on effect for us.

Things appear to be looking up for the euro, well at least short term anyway. Traders of the euro were encouraged by the instalment of a new Italian PM, which helped the single currency pretty much reinstate all the losses it made against the dollar last week.

There was also a bit of a boost from the Greeks, as their new Prime Minster took up his new role. In addition, the Greek finance minister stated that his priority was to get the next EU-led loan tranche in place.

EUR/USD is trading at $1.3716 currently, with support at $1.3675 and resistance at $1.3815.

By Simon Denham, 25 November 2011

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