DailyFX - Forex Market News

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• FOREX: Trust in a Dollar Rally is Difficult to Muster without Wholesale Risk Aversion
• Forex Weekly Forecast 05-15-2011
• Gold Faces Bearish Trend Change as QE2 Expiry Looms Ahead
• Euro on the Verge of Financial Panic but Risk Appetite Still Holding
• Canadian Dollar Likely Topped Against US Dollar, Risks to Downside
• Aussie Rout May Continue as Investor Sentiment Remains Fragile
• New Zealand Dollar Faces An Even Broader Range As Risk Falters
• Japanese Yen Outlook Hinges On 1Q GDP, BoJ Rate Decision
• Pound Plummets Ahead of Key CPI Data, BoE Minutes
• Diminishing Risk Appetite Sees Dollar Index at Six-Week Highs
• U.S. Dollar Benefits From Risk Aversion, Index Eyes 9800
• Guest Commentary: Gold & Silver Daily Outlook 05.13.2011
• Forex: Euro Rally Gathers Pace As 1Q GDP Tops Forecast, British Pound Outlook Hinges On BoE Minutes
• Crude Oil, Gold Vulnerable as US CPI Threatens to Rekindle Risk Aversion
• FOREX: All Eyes on US Inflation Gauge as Currencies Track Risk Sentiment

FOREX: Trust in a Dollar Rally is Difficult to Muster without Wholesale Risk Aversion Posted: It was a contentious for the dollar to end the week. The currency’s most liquid pairing – EURUSD – closed out the period with what seemed a critical bearish break that would seem to open the door to significant follow through on a quickly building trend. However, fundamental traders should have noted something was amiss.

Forex Weekly Forecast 05-15-2011 Posted: -Euro on the Verge of Financial Panic but Risk Appetite Still Holding -Japanese Yen Outlook Hinges On 1Q GDP, BoJ Rate Decision -Pound Plummets Ahead of Key CPI Data, BoE Minutes -Aussie Rout May Continue as Investor Sentiment Remains Fragile -New Zealand Dollar Faces An Even Broader Range As Risk Falters -Gold Faces Bearish Trend Change as QE2 Expiry Looms Ahead

Gold Faces Bearish Trend Change as QE2 Expiry Looms Ahead Posted: Gold prices largely decoupled from the risk on/off dichotomy that ruled financial markets in the aftermath of the 2008 credit crisis and subsequent recession, managing to remain well-supported throughout. Broadly speaking, this largely reflected the prevalence of “extreme” bullish or bearish opinions on the merits of the global recovery, both of which saw gold as an attractive store of value.

Euro on the Verge of Financial Panic but Risk Appetite Still Holding Posted: If ever there were a good example of the equilibrium of risk / reward in the markets, it would be the euro. Even though the shared currency does not maintain the highest yield amongst its peers (the Australian and New Zealand dollars are still offering a better return); it nevertheless holds itself out to be as resilient as its more valuable counterparts. What makes this performance particularly remarkable though is that this inherent optimism is maintained despite the euro’s facing some of the worst fundamental risks of any of the majors markets. The financial troubles facing Greece and Portugal specifically present problems that run to the very core of euro and the European Monetary Union it represents. In the balance between the fear and greed that defines this (and every) market, there is clearly a dislocation – and it is primarily centered on the under-appreciation of present and growing risks. If we want to gauge when the euro will finally capitulate, our focus should be expectations for instability.

Canadian Dollar Likely Topped Against US Dollar, Risks to Downside Posted: Canadian Dollar Likely Topped Against US Dollar, Risks to Downside Fundamental Forecast for Canadian Dollar: Bearish US Dollar likely set important bottom versus Canadian Dollar View our monthly Canadian Dollar exchange rate forecast

Aussie Rout May Continue as Investor Sentiment Remains Fragile Posted: Aussie Rout May Continue as Investor Sentiment Remains Fragile Fundamental Forecast for Australian Dollar: Bearish Aussie Falls on Employment Data- Risk Aversion Buoys Yen Aussie Dollar Weakness Stands Out As Local Data and Macro Themes Weigh Australian Dollar Bounce is Corrective

New Zealand Dollar Faces An Even Broader Range As Risk Falters Posted: New Zealand Dollar Faces An Even Broader Range As Risk Falters Fundamental Forecast for New Zealand Dollar: Bearish New Zealand Dollar Under Greater Pressure after RBNZ’s Bollard Agrees with IMF New Zealand Dollar Slides after the IMF Assesses Kiwi Up to 20 Percent Overpriced NZDUSD: Short Setup Eyed Near 0.7980 Comm Bloc Anchored to Stock Performance

Japanese Yen Outlook Hinges On 1Q GDP, BoJ Rate Decision Posted: Japanese Yen Outlook Hinges On 1Q GDP, BoJ Rate Decision Fundamental Forecast for Japanese Yen: Neutral USD/JPY: Treasury Yields in Focus, Hinting at Yen Weakness Yen Strength Prevails- Kiwi Testing Key Support USDJPY: Long Trade Triggered on Fib Break

Pound Plummets Ahead of Key CPI Data, BoE Minutes Posted: Pound Plummets Ahead of Key CPI Data, BoE Minutes Fundamental Forecast for British Pound: Bearish British Pound Tests Trendline-Break Would Target 16040 British Pound Outlook Hinges On BoE Minutes British Pound Rally To Gather Pace, Euro Carving Out Top In May

Diminishing Risk Appetite Sees Dollar Index at Six-Week Highs Posted: The Dow Jones FXCM dollar index surged today after a another mid-day rout in equities saw the index pare early losses to test the upper bound trend line of the ascending channel that has held since April 28th.

U.S. Dollar Benefits From Risk Aversion, Index Eyes 9800 Posted: The Dow Jones-FXCM U.S. dollar index bounced back from 9563.96 to extend the advance from earlier this year, and the greenback should appreciate further over the near-term as currency traders scale back their appetite for risk.

Guest Commentary: Gold & Silver Daily Outlook 05.13.2011 Posted: Gold and silver are currently traded at moderate changes, after gold bounced back while silver kept on falling yesterday; where is the market headed today?

Forex: Euro Rally Gathers Pace As 1Q GDP Tops Forecast, British Pound Outlook Hinges On BoE Minutes Posted: The Euro advanced to 1.4338 during the overnight session as the advanced 1Q GDP report for Europe exceeded market expectations, and the rebound in the single-currency may gather pace during the North American trade as the recent developments encourage speculation for higher borrowing costs.

Crude Oil, Gold Vulnerable as US CPI Threatens to Rekindle Risk Aversion Posted: Oil, gold and silver prices may follow the S&P 500 lower as US CPI figures put inflation at the highest in 30 months, rekindling fears of looming monetary tightening.

FOREX: All Eyes on US Inflation Gauge as Currencies Track Risk Sentiment Posted: Traders have turned their attention to the US CPI figures, with an uptick in inflation threatening to boost tightening fears and undermine a rebound in risky assets.

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