Forex Investment and Currency Trading

EUR/USD

The euro fell to a one month low against the dollar on Friday on concerns about the health of the euro zone economy after Moody’s said it may cut Irelands sovereign debt rating. Moody’s said Ireland’s current AAA rating may be cut to mid-to-high Aa range if it concludes that the country will emerge from the crisis with “relative weak growth prospects and a much higher debt burden.

GBP/USD

Sterling slipped on Friday, pulling back from a 3 month high against the dollar as the pound followed broad losses in the euro, while market participants awaited the UK budget due next week. The pound hit a session low after UK trade and Investment Minister Mervyn Davis said he was not worried about a further slide in the currency, while adding a weak currency would help the British economy out of the recession. The UK government will present its budget to Parliament on Wednesday.

USD/CHF

The franc weakened against the euro today after Swiss National Bank Chairman Jean-Pierre Roth pledged to continue intervening to prevent deflation by keeping the Swiss currency from Strengthening. Roth stated that the currency intervention had become necessary as the rise in the Swiss franc threatened to offset the rate cuts.

AUD/USD

The Australian dollar drifted on Friday as nagging concerns about the global economy trapped it in a narrow range, but the currency still manage to rise on the week for the seventh straight week. Investor ambivalence about a global economic recovery halted the Aussie’s recent spurt, with traders also paying heed to the local dollar’s failure to break key resistance. A mixed bag of economic data, better than expected earnings from two US banks, and conflicting statements from top policymakers have left investors confused about whether the global economy is indeed teetering towards a recovery.

USD/MXN

Mexican bonds gained on Thursday amid expectations the central bank would slash its key interest rate for a second straight month, while stock jumped to a 14 week high on optimism US banks are stabilizing. The central bank is expected to deliver a 75 bps cut on Friday, taking Mexico’s key lending rate down to 6 percent. Some investors worry that the central bank has seemed too concerned with persistently high inflation and is not acting quickly enough to fight back against recession in Mexico. The peso weakened from a 17 week high hit in the late afternoon.

USD/JPY

The yen was the only major currency that strengthened against the dollar in early morning trade on lingering concerns about the global economy and banking systems. The yen was unchanged against the dollar after first quarter results from Citi were better than analysts’ estimates.

USD/BRL

Brazil’s stocks moved higher on Thursday, bolstered by domestic retailers and meat processors as well as upbeat news from the US banking sector, while the national currency also rose. The Bovespa index of the Sao Paulo stock exchange rose 1.66 percent helped by a rise on Wall Street. Brazil’s currency the real gained 0.91 percent snapping a two session decline.

USD/CAD

The Canadian dollar eased slightly versus the US dollar on Friday as domestic inflation data did little to encourage expectations that the Bank of Canada could soon take additional measures beyond interest rate cuts to stimulate Canada’s sagging economy. The data showed Canada’s annual inflation rate slowed to 1.2 percent in March from 1.4 percent in February, but the core rate closely watched by the central bank unexpectedly rose to 2 percent.

USD/KRW

The South Korean won closed the local session unchanged against the dollar on Friday as caution about the direction of global stock markets offset continued foreign buying in local shares. Foreign investors were net buyers in Seoul’s main stock exchange for the sixth consecutive week, the longest net buying spree since April 2007.

USD/CNY

IMF Managing Director said on Thursday that China’s currency remained significantly undervalued, although the country’s efforts to spur domestic growth would help with adjustment. Strauss-Kahn said China’s heavy stimulus spending would help its economy shift toward domestic consumption and away from exports, something that should help pare China’s huge reserves and rebalance the global economy.

USD/INR

India’s foreign exchange reserves fell to $252.977 billion as of April 10, from $255.16 billion a week earlier, the central bank said in its weekly statistical supplement on Friday. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves such as the euro, pound and yen.