DailyFX - Forex Market News

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• FOREX: Euro Threatened on Portugal Crisis Fears, BoE Minutes on Tap
• USD Graphic Rewind: Dollar Index Rises in Quiet Trade, Global Equities Pause
• Crude Oil Hits 2-Week High on Libya, Gold Struggles to Build Momentum
• Focus Shifts to Bank of England Minutes; Hawks Feeling More Confident
• FOREX: Dollar Sees a Very Early Bounce on Stalled Risk Recovery, European Schadenfreude
• An Intraday EUR/CHF Descending Channel is Creating Scalping Environment
• NZD/USD: Trading the New Zealand 4Q GDP Report
• S&P 500 Declines Could Force US Dollar Rallies on Forex Correlations
• Guest Commentary: Quake Response Puts Yen on the Line
• FX Headlines: Further G-7 Intervention Not Off the Table for Yen, Japan
• Forex: British Pound Tests 1.6400 On Higher Inflation, Euro Rally To Cool Ahead Of EU Summit
• Daily Sound Bites: SNB Hildebrand Says Franc Strength to Impair Growth

FOREX: Euro Threatened on Portugal Crisis Fears, BoE Minutes on Tap Posted: The Euro may come under pressure as Portugal votes on a controversial set of new austerity measures while the Bank of England releases minutes from its March policy meeting.

USD Graphic Rewind: Dollar Index Rises in Quiet Trade, Global Equities Pause Posted: The greenback posted its first day of gains for the week as the 3-day equity rally took a break…

Crude Oil Hits 2-Week High on Libya, Gold Struggles to Build Momentum Posted: Crude oil prices hit a two-week high as the crisis in Libya continued to push prices higher, while gold is struggling to find direction between competing influences from risk sentiment trends.

Focus Shifts to Bank of England Minutes; Hawks Feeling More Confident Posted: The Bank of England Minutes is the key event risk on the calendar for Wednesday and could very well result in an outperformance in the Pound…

FOREX: Dollar Sees a Very Early Bounce on Stalled Risk Recovery, European Schadenfreude Posted: Risk appetite interest is still the most prominent fundamental driver for the US dollar. That said, the greenback’s performance mirrored that of the benchmark equity indexes through Tuesday’s trading sessions. So, not only did the dollar post its first advance in four days with the pullback from the S&P 500; but the lack of conviction in this capital market’s reversal led to an equally feeble advance from the benchmark currency.

An Intraday EUR/CHF Descending Channel is Creating Scalping Environment Posted: Seen as a risk-on, risk-off pair gauge for Europe over the past few months, I noted that “the EUR/CHF has appeared to have completed its most recent advance”; accordingly, the pair has declined as expected.

NZD/USD: Trading the New Zealand 4Q GDP Report Posted: Economic activity in New Zealand is projected to expand 0.1% during the last three-months of 2010 after unexpectedly contracting in the third-quarter, and the rebound in GDP could spur a bullish reaction in the NZD/USD as the central bank maintains a neutral tone for future policy.

S&P 500 Declines Could Force US Dollar Rallies on Forex Correlations Posted: Forex correlations to the US S&P 500 remain near record-highs as the safe-haven US Dollar and Japanese Yen move virtually tick for tick with global stock market indices.

Guest Commentary: Quake Response Puts Yen on the Line Posted: One of the immediate financial consequences of the catastrophic Japanese earthquake is that Japan needs to call on its huge cache of foreign exchange reserves to rebuild its shattered infrastructure. To pay for domestic projects, Japan will require yen - not dollars, euros or Swiss francs. As a result of these conversions, the yen rallied considerably after the quake struck.

FX Headlines: Further G-7 Intervention Not Off the Table for Yen, Japan Posted: The Loonie backed off its recent gains as retails sales figures, dragged down by struggling new automobiles sales, sent the USD/CAD pair higher in the minutes following the data release.

Forex: British Pound Tests 1.6400 On Higher Inflation, Euro Rally To Cool Ahead Of EU Summit Posted: The British Pound advance to a fresh yearly high of 1.6400 as the headline reading for U.K. inflation topped market expectations, and the near-term rally in the sterling may gather pace ahead of the Bank of England minutes as market participants speculate the central bank to gradually normalize monetary policy over the coming months.

Daily Sound Bites: SNB Hildebrand Says Franc Strength to Impair Growth Posted: SNB President Hildebrand talks about inflation in the Swiss economy and franc strength….

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