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Posts Tagged ‘Foreign currency trading’
Euro Went Up to a New High
The euro reached a new high of $1.3733, and brought along a fresh, new wave of positive risk sentiment. Although this forex trading currency was pulled down by strong data coming from the US, the euro was able to make a comeback after China released a statement that indicated a significant increase for its purchasing manager’s index (manufacturing).
Positive sentiment for global recovery was further boosted by changes in the previous week’s purchasing managers’ indexes from the European zone. These data showed that the joint index from the zone was higher than the initial estimate. As an effect, it helped the euro deal with the negative results posted by German retail sales, as German retail sales went down in August by 0.2%.
As forex investors went for riskier assets, the stock markets in the Euro zone went up by almost 0.7%. According to some trading analysts, the euro will continue to increase, especially if new US data post disappointing results as expected.
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.
Risk Appetite Fuels Gains vs. the Dollar
Positive economic data from numerous regions around the world has fueled confidence in global recovery. Investors are reacting by shifting their forex trading efforts toward higher-yielding currencies, causing the dollar to lose out against many of the majors. Both Dow Jones and NASDAQ gained, crude oil also strengthened to close at $77.20 per barrel, and gold closed at about $1,245.30 per ounce.
In the UK, Nationwide Consumer Confidence data came out better than expected, while the RICS House Price Balance came out worse than expected. The GBP/USD pair traded at a low of 1.5344 and a high
of 1.5486.
The euro made gains against the dollar as well, with the EUR/USD pair trading at a low of 1.2677 and a high of 1.2891. The euro was bolstered by positive data on Chinese industrial production and
retail sales, which show that global recovery may be on the rise. As for the Japanese yen, it also posted gains versus the dollar, with the USD/JPY trading at a high of 84.41 and a low of 83.23.
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