Forex Investment and Currency Trading

Euro/dollar has been unable to repeat its Memorial Day weekend foray over 1.4000 as the pound has taken center stage in the risk appetite venture, over 1.6000 for the first time since early November.  Traders note some downside risk to German inflation outlook, since some German regional CPI’s have come in weak, and the ECB’s Liikanen said the ECB hasn’t set an interest rate floor, Euro negative.  Technicals suggest Euro upside is limited since it failed to close over 1.4000 and it’s a sell with support at 1.3830 and 1.3721.  Fundamentals are Euro supportive, but perhaps not just yet, given [...]

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The flows overnight were tilted towards risk aversion after the US holiday. The Euro was lower against most majors. As investors looked to take profits or trim back positions. Global stocks fell as the USD and JPY strengthened on concerns of economic growth and global stability after a missile test by North Korea and a decline in European stock markets. Over the weekend, North Korea fired two short-range missiles off of its eastern coast, concerns that the tests maybe nuclear have sparked global condemnation and risk aversion. Global growth worries were exacerbated when construction companies lead 18 or the 19 [...]

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The dollar fell on Friday to its lowest in five months against a basket of currencies on concern about the triple-A ratings status of the United States after Britain’s outlook was downgraded the previous day. S&P said it could downgrade Britain’s triple-A credit rating, a move that initially hit the pound but then sparked broad selling of U.S. stocks and bonds on fears that record U.S. deficits could lead to the same warning. After hitting five-month lows in the past three days, the dollar index looks to be heading for its biggest weekly fall since the Federal Reserve launched its [...]

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EUR/USD
The euro gained against the dollar after the Fed announced it would consider buying more securities to help stimulate the economy.  The ECB considered, at its May governing council meeting, a proposal to buy as much as EUR125bn of assets, including corporate bonds and commercial paper.
GBP/USD
Sterling fell sharply across the board on today after ratings agency Standard & Poor’s lowered its outlook on Britain to negative.  Official data released minutes after the S&P announcement showed British public borrowing hit a record high for the month of April.
USD/CHF
The Swiss franc rose on today, hitting its highest level against the dollar in [...]

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