via DailyFX
• Fed Report Points to Further Rate Cuts, Dollar Accelerates Its Record Breaking Declines
• Euro, Backed By Strong Data, Blows Through 1.50 Against The Dollar
• Australian Dollar Joins Its New Zealand Counterpart At Multi-Decade Highs
EUR/USD showed some intraday swings on Friday, but in retrospect the pair basically traded sideways. EUR/USD started European trading in the 1.48 area, but was propelled higher as the European PMI data came out on the stronger side of expectations. The combination of poor US data recently and those better than expected European data was seen as another indication that the ECB won’t be in a hurry to take action anytime soon, maintaining the euro favourable interest rate differential. To be honest, the European data on Friday weren’t unequivocally positive as the French data (consumer spending and Business confidence) and the EU industrial orders came in well below expectations. The euro fell prey to some profit taking later in US trading, but still closed the day at 1.4828, slightly higher compared to the 1.4814 close on Thursday. Read more…
by David Morrison
In this article, David describes the advantages of forex trading compared to other forms of trading. Certainly having no brokerage costs adds to the profitability of trading any product, and hence is one of the attractions of currency trading. Here’s the article:
There are many different advantages to trading forex instead of futures or stocks, such as: Read more…
by David Jenyns
An interesting title? Here David talks about what not to do, and it is a trading strategy that many people still do, usually for no apparent reason apart from being something they heard other people did, but don’t understand how it may not be suitable for trading. Here’s the article:
You may be wondering, `Why would David Jenyns write about the worst Forex trading strategy around? Read more…
by KBC Market Research Desk
On Tuesday, the euro extended its rise against the dollar. The trend was already in place since early last week and in the absence of key economic data the move was extended. The ECB (Noyer) still being rather optimist on the European economy going into 2008 might have been slightly euro supportive and this also was the case for the positive market sentiment that reigned on the stock markets, at least in the early hours of trading. However, later in US trading the euro (and stocks) clearly lost momentum and EUR/USD closed the day at 1.4725, still a decent gain compared to the 1.4657 close on Monday. Read more…
by Bob Kozak
Canadian Dollar (CDH8):
The CD opened higher at .9932 against a weaker DX, as higher metals/energy prices increased export revenue potential. Prices hit a morning Hi of .9948, before a decline in Dec.Wholesale Sales and lower core inflation set the tone for at least a 50bp rate cut at the March 4th rate meeting. The CD retraced to a daily Lo of .9824, before bouncing into the close to end the session at .9827, down 77 tics. The s/t trend remains ‘negative’ w/ ‘weak’ momentum indicators. Traders will key on the Fib .618 level of .9818, looking for support and watching the U.S. CPI and Housing Starts data. A lower open may find Support at .9785 and .9742, while an open above .9866 should find Resistance at .9909 and .9990.
Dollar Index (DXH8): Read more…
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