Month: December 2010

The Securities and Exchange Commission is looking into trading of privately-held internet companies such as Facebook and Twitter. Such companies are traded on private exchanges, which generally support low volume trading.

The US dollar traded with much stability versus the Euro in overnight trading session on Wednesday as US Treasury yields increased in the auction on Wednesday. The yield on 10-year, long-term note surged by 16 basis points.

Negative points still created uncertainty among the investor due to rising fiscal problems in United States and euro-zone’s debt situation. These factors kept the Swiss Franc and Japanese Yen on their respective highs versus the greenback.

The dollar index DXY which measures the US dollar’s performance versus its six major rivals was slightly down o 80.276 as compared to 79.596 on Tuesday.

Currency Strategist Neil Mellor from New York Mellon commented, “Cheaper U.S. Treasury prices make them more attractive but only to a point, and there could come a point when investors don’t want to buy them anymore.”

Analysts are of the opinion that main of cause of US dollar decline versus the Yen is that Japanese exporters have been selling the US dollar perceiving the greenback to be weakening.

The Euro remained steadier versus the US dollar to 1.3123 after hitting $1.3275 on Tuesday. The Euro moved slightly up from the record low 1.2440 to 1.2489 as compared to Swiss Franc. The Swiss Franc made its mark on Tuesday after touching its record low of 0.9437 versus the US dollar however toady it recovered to $0.9517 on Wednesday.

Currency Strategist Niels Chirstensen from Nordea in Copenhagen commented, “The Swiss franc is well supported by fundamentals, risk aversion and by people diversifying out of Euros.”

The US dollar declined 0.5 percent to 82.08 versus the Japanese Yen as compared to 81.81 on Tuesday.

In other currencies the US dollar declined 0.4 percent versus the Australian dollar to 1.0136 as compared to 1.0153 on Tuesday. Investor seems to be selling the Euro from portfolio and taking fresh position in Australian dollar which is also being considered as safe haven.

The US dollar also declined 0.3 percent versus the Canadian dollar to 0.9982, many traders are expecting that the pair could hit its lowest in 2.5 years which was reached in April at CS0.9931

Daily forex trading news written by Rehan from DailyForexTrade.com

By Anton Eljwizat

Crude oil prices have recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, the daily chart’s Stochastic Slow signals that a bearish reversal is imminent. A downward trend today is also supported by relative Strength Index. Forex traders involved with commodities like this can take advantage of this knowledge by going short on Crude Oil now, and at a great entry price!

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Gold prices rose significantly in the last week and peaked at $1408 an ounce. However, the 4 hour chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders can take advantage of this imminent upward movement by entering long positions at an excellent entry price.

• Below is the 4-hour chart for gold by ForexYard.

• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.

• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.

• Point 4: Williams Percent Range also supports the downward direction.

By Anton Eljwizat

Silver’s sustained upward movement has finally pushed its price into the over-bought territory on the 4-hour chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The release of the M3 Money Supply report today at 9:00 GMT could help boost the EUR in today’s early morning hours if the report reveals a growth beyond expectations; suggesting growth in spending and investment, as well as inflation. The KOF Economic Barometer out of Switzerland at 9:30 GMT should also drive volatility among the CHF pairs in today’s thin market conditions.

Economic News

USD – US Dollar Sees Sharp Rebound against EUR

The US dollar’s rapid rebound against the euro yesterday appears to have been offset by the moderate losses it experienced elsewhere. The USD/CHF hit a record low price of 0.9433 due to the growth of the franc’s appeal as a hedge against year-end market maneuvering.

The EUR/USD made distinct gains as the euro gained appeal during the thin, post-holiday market environment. A surprisingly low consumer confidence report out of the United States yesterday also pushed traders back into safe-havens as part of a year-end portfolio adjustment. The USD, JPY and CHF gained as a result.

With very little news expected out of the United States today, traders appear to be gearing up for another day of thin trading and volatile market movements. The USD may not factor as a central currency in today’s market as traders will likely be paying closer attention to the M3 Money Supply report out of the euro zone and the KOF report from Switzerland at 9:00 and 9:30 GMT, respectively.

EUR – EUR Mildly Bearish on Risk Aversion

The EUR gained somewhat Tuesday during Asian and European trading hours, but appears to have experienced a minor correction against the majors during New York hours. The gains experienced Monday appear to have been short-lived as the EUR now seems to be lower against most of its currency counterparts.

Against the British pound (GBP), the 16-nation single currency flattened out, falling mildly from just over 0.8540 to a current price of 0.8526. After surging to as high as 1.3273 against the USD yesterday, the EUR/USD rapidly pared its gains during New York trading hours to a price near 1.3128 on a return of risk aversion late in the trading day.

The release of the M3 Money Supply report today at 9:00 GMT could help boost the EUR in today’s early morning hours if the report reveals a growth beyond expectations; suggesting growth in spending and investment, as well as inflation. The KOF Economic Barometer out of Switzerland at 9:30 GMT should also drive volatility among the CHF pairs in today’s thin market conditions.

JPY – Year-End Covering and Thin Markets Boost JPY Demand

The Japanese yen received a boost in trading these past few days as multiple market forces combined to increase demand for the island currency. Continued debt concerns in Europe, tensions on the Korean peninsula, and less-than-satisfying figures from the US yesterday have added to the risk-averse atmosphere experienced these past few weeks, providing support for the JPY.

Additionally, thin market trading conditions experienced due to the holiday season in Europe, the US, and elsewhere, has combined with year-end portfolio covering and positive industrial figures to incentivize a return to the yen in short- to medium-term trading. The USD/JPY has fallen slightly to 82.27 from 82.53 in yesterday’s New York trading hours.

Crude Oil – Harsh Winter Drives Heating Prices Higher, Crude at $91.40

The short-term weakness to the US dollar against its primary rival, the euro, helped drive commodity prices higher. A boost to heating demand added to the bullish run in crude oil yesterday, with prices reaching above $91.40, just below a 26-month high.

The sudden blanket of snow which covered the American northeast over the last few days has pushed heating oil demand beyond expected levels for short-term investment. Traders took this as a sign to buy into oil futures and drive prices higher.

Technical News

EUR/USD

Many indicators on this pair appear to be floating in neutral territory. The Bollinger Bands on the daily chart look to be tightening in anticipation of a volatile movement, but direction at this point seems unclear. Traders may want to be cautious with trading this pair prior to the end of 2010 as high volatility is expected.

GBP/USD

The Relative Strength Index (RSI) on the daily chart appears to have just entered the over-sold region, suggesting bullish pressure. The daily Williams Percent Range also looks to be over-sold. An impending bullish cross on the weekly Stochastic (slow) adds-up to a bullish forecast for this pair. Traders may want to go long today.

USD/JPY

A fresh bullish cross on the daily Stochastic (slow) suggests an imminent bullish correction to this pair’s recent downturn. The daily Williams Percent Range shows the pair ascending out of the over-sold region as well, supporting the bullish notion. Going long appears preferable today.

USD/CHF

After touching the lower border of the daily chart’s Bollinger Bands, this pair now appears to be bouncing off its support line at 0.9500 and turning bullish. The daily Williams Percent Range seems to be exiting the over-sold territory, indicating added bullish momentum. Going long with tight stops may be a wise tactic today.

The Wild Card

GBP/CHF

The persistent bearish trend of this pair appears to have recently pushed its technical indicators into displaying a possible bullish correction. The daily Williams Percent Range and RSI both show the pair as over-sold, and the weekly Stochastic (slow) appears to be displaying a fresh bullish cross. Forex traders may take these signals as highlighting the growing bullish pressure building under this pair’s recent movement and go long with tight stops to catch the swing for great short-term profits.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

The US dollar heavily plunged against the Japanese Yen and Swiss Franc on the latest disappointing US economic data showing reduced US home prices and consumer confidence.

The US dollar declined to 82.11 versus the Japanese Yen as compared to 82.81 as on late Monday. The pair USD/YEN reached the day’s low of 81.79 which happen to be the lowest since mid November.

Global head of currency Marc Chandler from Brown Brothers Harriman commented, “Japan had encouraging economic data with industrial production and retail sales both beating expectations, though inflation remains subdued.”

The US dollar remained under immense selling pressure versus the Swiss Franc and reached its record low of 0.9432. The pair USD/SWF recovered to 0.9502 but was down by 0.7 percent.

Director of currency research Kathy Lien from GFT commented, “In a world of quantitative easing, sovereign debt risk and slow growth, the stable fiscal finances of the Swiss economy and the low level of unemployment has made it one of the most popular safe havens for global investors.”

However in comparison with other currencies such as Euro and British Pound the greenback stood on solid grounds as euro zone’s debt situation seems to be in more crucial situation.

The dollar index DXY which measures the US dollar’s performance versus it six major rivals touched the day’s low of 79.596 but later on recovered to 80.124 as compared to 80.34 as on Monday’s late North American trading session.

Where Yen and Swiss Franc are being taken as safe haven versus the US dollar; the euro declined against the US dollar to 1.3126 while the British Pound also declined to 0.6 percent to $1.5392 on Tuesday.

Daily forex trading news written by Rehan from DailyForexTrade.com

By Forex Signs, Inc.

The Japanese yen is looking very optimistic today as against euro most likely due to the hiking of interest rates in China. China’s choice to hoist interest rates turned out to be in favor of Japan’s economy. The Nikkei-225 index of Japan gained 0.75 percent in Monday’s trading session. Further, Japan’s production rises, suggesting that economic recovery in their nation is intact. The increase of the yen may be harmful to their economy as the export industry suffers but the movement is unstoppable as Japan indicates a strong economic upturn.

However, the posted decrease in Consumer Prices might affect the trade. A fall of 0.5 percent is recorded in November, its 21st straight monthly drop. A deflationary pressure is weighing now on the economy. This data may possibly affect the trade a bit.

In conclusion, despite the pessimism of the aforementioned news, the Japanese yen may still look forward to a good trade today. It looks like the yen has been named the currency safe haven for now.

Asian Session Outlook

Yesterday’s trade in the Asian session was in favor of their three major currencies. The Japanese yen, Australian dollar, and New Zealand dollar gushed upward against its American and European currency counterparts. The movement of the Asian currencies against European counterparts was dramatic. At the beginning of the trade, euro had a bullish breakout against JPY, AUD, and NZD; 2-5 candle sticks after it had a reversal. As against JPY, it had a reversal after hitting 109.41 price level. For the AUD, it u-turned after touching 1.3143. Lastly, the EURNZD pair declined after making resistance level at 1.7632. The Asian currencies may have rallied despite Bank Holiday probably perhaps it was the currency safe haven for now as USD was badly affected by the blizzard in their country.

For today’s session, the Japanese yen might still pursue a bullish channel against greenback and fiber. Before the holiday started, Japan strongly implied that their economy is strong. There may be no economic indicators for Japan but for now, it is still considered as the traders’ safe sanctuary for trade.

Meanwhile, the aussie and kiwi may also look at an upward trend as euro is still infected by the contagious debt crisis while greenback at the moment is affected by the blizzard that occurred in the east coast.

More, the three musketeers of Asian currencies can expect further escalation as China increased their interest rates to control inflation. The Asian stocks rallied and so is the trade of their respective currencies.

About the Author

Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.

AUDUSD stays above a uptrend line on 4-hour chart and remains in uptrend. As long as the trend line support holds, uptrend is expected to continue and another rise towards 1.0182 resistance is still possible later today. However, a clear break below this trend line will suggest that a cycle top is being formed. Key support is located at 0.9987, a breakdown below this level could bring price back to 0.9600-0.9700 area.

Daily Forex Forecast

Gold prices jumped above $1400 this morning as traders await the results of the Treasury auction slated for later today. Traders are expecting another strong Treasury auction today, which would push the dollar lower and gold prices higher.