Forex Update 26 October 2012

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Forex Trading: 26 October 2012

The euro-dollar pair dropped 37 points to $1.2933 as Spain's biggest bank, Banco Santander, reported an incredible 94% fall in third quarter profits as property prices continued to slump.

At the same time, the European Bank for Reconstruction and Development expressed concerns about the worsening outlook in Eastern European economies, where Western banks are heavily exposed.

This morning, the single currency is around last night's closing level, trading at $1.2935.



Forex Trading: 25 October 2012

It seems that the Fed's decision to keep the same levels for its asset buying program, instead of increasing it to tackle ongoing signs of stuttering, kept financial spread trading investors on edge. No additional stimulus meant no reason to exit the dollar.

If anything, the US dollar continued to rebound slightly versus the euro as the US economy looks to be in better shape than Europe's.

Overall, the EUR/USD pair lost 12 points to $1.2972, but has managed to get itself back above the $1.3000 level this morning, trading at $1.3010 at the time of writing.



Forex Trading: 24 October 2012

Some weaker-than-expected global economic data has spooked CFD trading investors recently, culminating in yesterday's classic risk averse session.

With US earnings falling short of expectations, currency investors rushed into the safety of the US dollar, driving the EUR/USD pair 73 points lower to $1.2985.

It remains to be seen to what extent the German PMI data can offer a sigh of relief later today.



Forex Trading: 23 October 2012

The euro/dollar market rebounded by 38 points to finish at $1.3059 yesterday, after Spanish Prime Minister Mariano Rajoy extended a majority in Galicia, his home region.

At the same time, the shared currency was also able to maintain its gains despite five Spanish provinces being downgraded by Moody's.

This may indicate that FX investors are still on the optimistic side, particularly as the chart shows that the euro is close to its recent high.

This morning, however, the negative sentiment has just set in, taking the euro/dollar pair down to $1.3025 at the time of writing.



Forex Trading: 22 October 2012

Spanish Prime Minister Mariano Rajoy held his ground and denied that his country is under growing pressure to ask for financial help from the European Central Bank.

That pushed the EUR/USD 47 points lower, with the forex pair settling at $1.3020.

The EU summit in Brussels failed to deliver any clear timeframe for a potential bailout and an agreement over fiscal unity still looks to be miles away for now.

However, the weekend's regional Spanish elections don't seem to have been as bad as many had feared, so the single currency is clawing back a little bit of Friday's loss, taking it to $1.3040.



Forex Trading: 19 October 2012

At the latest summit in Brussels, EU leaders tried to reach an agreement for a single supervisory body that could break the links between banks and governments.

In fact, earlier this morning, it was announced that they did reach a consensus, but so far the reaction in the forex markets has been muted.

The euro/dollar pair lost 52 points yesterday, closing at $1.3066, after breaking one-month highs, and this is exactly where the cross remains at the time of writing.



Forex Trading: 18 October 2012

Yesterday, the euro rallied to a four-week high against the US dollar, closing 66 points higher at $1.3118.

Currency spread trading investors bought back into the euro after being reassured by Moody's announcement that they would be maintaining Spain's investment grade.

One other reason in favour of bulls might have been the good results for the Eurozone trade balance which was positive and above initial estimates.

This morning, a little bit of profit taking seems to be creeping in, with the EUR/USD market just drifting back below $1.3100 to $1.3090 at the time of writing.

Having said that, with the EU summit over the next couple of days, there may not be too many bears to go against the single currency right now.



Forex Trading: 17 October 2012

In forex trading, the euro climbed 105 points against the US dollar, moving above the $1.3000 mark, following renewed speculation that Spain is getting closer to asking for a bailout.

Meanwhile, Moody's came to the Eurozone's rescue by confirming Spain's credit rating, citing 'a reduction in the risk of losing access to markets'.

This morning, the EUR/USD pair is still knocking on its recent highs, trading at $1.3100 at the time of writing.



Forex Trading: 16 October 2012

Ahead of a European leaders' meeting scheduled for later this week, the shared currency closed slightly lower against the US dollar yesterday at $1.2948.

The potential Spanish bailout and a fresh call for help from Greece will be high on the agenda.

In the meantime, currency spread trading investors will be keen to find out the economic sentiment in Germany with the release of ZEW indicator.



Forex Trading: 15 October 2012

European policy makers are desperately trying to contain the region's debt crisis which threatens the stability of the single currency and the project as a whole.

Lately, even Germany has adopted a milder tone against Greece, and looks like it might be in favour of further concessions.

During Friday's session, the euro gained 29 points to $1.2955 and, this morning, the increased risk appetite is lifting the euro/dollar pair to $1.2960.


By Simon Denham, 26 October 2012


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