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- Forex Arbitrage – Make Some Different Way to Create Profit
- Using Indicators and Software to Trade Forex
Archive for September, 2010
Dollar Falls as US Fed Preps to Ease Monetary Policy
An announcement that the US Fed will have a meeting to discuss monetary policy has once again had an effect on the forex trading market. It is said that the US Fed is considering easing the monetary policy to help boost the US economy. Investors remained wary of the news and how the Fed’s decision may actually affect the US dollar. As a result, the US dollar dropped against many of the major currencies in the forex market.
The euro shot up to a five-week high against the dollar, thanks to the news about the US Fed meeting. The euro is facing a number of problems, however, as the debt crisis in Ireland and Portugal continue to remain a major worry. In the UK, the M4 money supply fell to a record low annual rate. Economic recovery still seems to be slow and the pound hit a seven-week low against the euro.
Debt Crisis in Euro Zone Still Very Real
Forex trading investors who deal with the euro have returned to risk aversion strategies as the debt crisis in the Euro zone continues. Over the past few days, the euro was able to make some gains over the dollar, but on September 20th, the euro seems to have plateaued at the 1.300 level. The EUR/USD pair traded at a high of 1.3067 and a low of 1.3031, and the trend seems to be bullish despite investor worries.
The British pound has been able to hold out against the dollar, staying near the month-high that it recently posted. The GBP/USD pair traded at a high of 1.5648 and a low of 1.5592.
The dollar was able to gain against many of the majors as the market begins to correct itself. Investors will have to see how the dollar continues to move as the market is currently in a corrective shift. The Euro zone problem will certainly play an important role.
USD Up against Many Major Currencies
The dollar posted gains versus many of the forex trading majors after a series of mixed US economic data came out, aside from the fears investors have regarding the rate of worldwide economic recovery. The Philly Fed Manufacturing Index landed at -0.7 against the forecast 0.9. Fluctuation in stock markets resulted in Dow Jones and NASDAQ closing at +0.21% and +0.08% respectively. For the 3rd day, crude oil went down by 1.9% and closed at $74.57 per barrel. Gold increased by 0.4% and closed at $1,273.8 per ounce. As for the Unemployment Claims, it came out lower than the expected 463K, at 450K. CPI is anticipated to go down to 0.20% from 0.30%. The Michigan Consumer Sentiment Index is anticipated to go up from the previous 68.90 to 70.00.
The British pound went down against the euro and the US dollar after an unexpected fall in U.K. retail sales last August. This first decline in U.K. retail sales since the month of January contributed to the growing concern over the slowing rate of economic growth. The GBP/USD forex pair exchanged at a high of 1.5649 and a low of 1.5532.
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