Forex Trading: 30 March 2012
It was a bit of a rollercoaster yesterday for the euro, as it moved higher in early trading but subsequently plummeted, as traders showed nerves ahead of the Spanish government's plans to tackle their budget deficit.
They sought safety in the dollar as the, pushing the pair down to $1.3251 as it struggled to gain back the ground it lost.
This morning it's all change again, as the euro is rocketing towards its month high on the expectation that Eurozone finance minsters will agree to increase the bailout fund at the EU summit in Copenhagen today.
The pair is trading at $1.3363 currently and having broken through a declining trend line the pair could move higher.
Forex Trading: 29 March 2012
On the currency front things are mixed with the EUR/USD trading at $1.3330 having largely drifted sideways for the last few days.
The risk aversion in the shares spread trading markets and concerns over Spain has not really affected the euro as one would expect, but for now further gains look to be capped.
Forex Trading: 28 March 2012
Onto the currency markets
and sterling has been attempting to get itself back above the $1.6000 level in recent days, taking advantage of a slight change in fortunes for the US dollar.
As Bernanke has been touting the idea that further stimulus is by no means off the cards the US dollar has come under a bit of pressure allowing the likes of sterling and the euro to gain back some lost ground.
The rejection by cable of the $1.6000 level has brought it back down to $1.5950 at the time of writing. On the hourly chart this move has formed a bit of a double top over the near term which could allow the bears to see the GBP / USD spread trading market test $1.5900 and possibly $1.5800.
Forex Trading: 27 March 2012
The euro spiked to its highest level this month versus the dollar on the back of speculation the Fed will maintain easy monetary policy, in order to bolster growth.
Bernanke's comments yesterday caused currency spread trading investors to sell the dollar as they anticipated the so-called QE3, third lot of quantitative easing.
Coupled with the fact that EU finance ministers will agree to reinforce the Eurozone debt-crisis firewall this week, the single currency was in favour with traders and the pair jumped to $1.3368 last seen on 29 February. The pair broke through the $1.3294/303 resistance range, which could signal potential to move higher to $1.3489.
Forex Trading: 26 March 2012
On the FX CFD trading
markets, the euro managed to end the week positively against the dollar, as weak US data revealed new home sales declined for a second consecutive month.
The single currency was also helped on as French growth estimates were revised upwards and also talks of EU policy makers combining two rescue funds to make money more available to debt stricken countries.
This morning the euro is trading slightly lower against the dollar at $1.3250 and sees support at $1.3190 and resistance sits at $1.3290.
Forex Trading: 23 March 2012
On the forex CFDs
markets, the recent move to the downside in risk assets has strangely led to a fall in the dollar whose recent run of form seems to have come to an end.
At the same time the euro has not exactly suffered a great deal from the sell off in equities, meaning that currency market movements this week have been slightly out of sync with what you'd expect to happen.
This morning EUR/USD is at $1.3265 and on the bid at the time of writing as it tests the days highs.
Near term support and resistance is seen at $1.3185, $1.3160, $1.3130 and $1.3280, $1.3310 respectively and for now it just seems that momentum is with the bulls for now.
Forex Trading: 22 March 2012
It's a bit of a mixed bag for the currency spread trading markets at the moment.
Yesterday US existing home sales figures showed a marginal decline and this, along with a slowdown in the Chinese economy, saw traders seek refuge in the US dollar.
The euro did manage to claw back some losses, however has subsequently dropped like stone by around 60 pips in the past hour.
This could be traders anticipating German services and factory output data due out later today, which could determine more of the short term direction for the single currency.
EUR/USD is currently trading at $1.3200 and has broken through a rising trend line which may signal further weakness along with the fundamental data.
Forex Trading: 21 March 2012
On the FX spread trading markets, the bounce in risk assets this morning is assisting the euro which is higher so far in today's session.
EUR/USD is at $1.3255 at the time of writing having been a little higher already. The recent little uptrend just seems to have come up against resistance around $1.3290 which is where the pair failed earlier in the month.
There was concern earlier in the week about rising Portuguese bond yields, but yesterday those concerns were out to rest as the yields fell back.
Forex Trading: 20 March 2012
The euro had another surge yesterday against the dollar, jumping as high as $1.3265 on news that the process of payments on Greek credit default swaps has become clearer.
However, the single currency's three day winning streak looks as though it could have a bit of a pull back amid concerns that China's steel production is slowing.
This morning it looks as though traders are cutting some long positions in the euro and moving into the safer dollar as a result of the slowdown in the Chinese economy.
The EUR/USD spread trading
market is currently trading at $1.3210 but has broken through a rising trend line, which could signal further weakness.
Forex Trading: 19 March 2012
FX spread trading investors long of the euro enjoyed a rally against the dollar on Friday, after the University of Michigan consumer sentiment index fell, as did industrial production.
The poor data figures were enough for traders to lose their appetite for the US currency. The single currency jumped around 140 pips to $1.3186, although that has proven to be short lived as the pair has fallen nearly quarter of a percent this morning, trading at $1.3145
The expectation is that if the Fed avoids a third round of quantitative easing, favour will be back with the dollar in no time.
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 Simon Denham, 30 March 2012