DailyFX - Forex Market News |
- British Pound to Decline as Interest Rate Hike Outlook Withers
- Canadian Dollar to Rise as Ahead of GDP Report, Rate Decision
- Weekly Trading Forecast - 05.30.2011
- FOREX: Dollar - Expect Little from NFPs, Keep a Wary Eye on the S&P 500 and Talk of the QE2 Expiration
- US Dollar Health Depends on the S&P 500 First and QE2 Second
- Gold Holds Below Key Resistance- Well Supported on Debt Concerns
- Euro Forecast Bullish but Greek Debt Crisis Remains Major Risk
- Japanese Yen Direction to be Dictated by Broader Market Trends
- Kiwi’s Run in Question as Markets Weigh Risk Tolerance
- Aussie Continues to Respect 1.0710 Resistance- GDP Data Eyed
- Greenback Closes Lower on the Week as Data Weighs
- Growth Data Next Week Comes Ahead of Key Rate Decisions
- FX Headlines: Franc Continues Rally to Record Against Euro
- FOREX: Swiss Franc Soars After IMF Calls for SNB Rate Hike, US Dollar Sold
| British Pound to Decline as Interest Rate Hike Outlook Withers Posted: |
| Canadian Dollar to Rise as Ahead of GDP Report, Rate Decision Posted: |
| Weekly Trading Forecast - 05.30.2011 Posted:
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| Posted: The dollar suffered its worst weekly performance in a month. What initially looked like a promising open to the period, quickly turned into a dramatic decline for the struggling greenback as the few fundamental compliments for the currency have failed to gain traction. Despite the potential indirect benefit the dollar could garner from uncertainty surrounding Europe’s financial difficulties or speculation ahead of the Fed’s cap on the second, $600 billion quantitative easing (QE2) program next month; the FX crowd once again deferred to risk appetite and the sparse return to be found from the benchmark currency. |
| US Dollar Health Depends on the S&P 500 First and QE2 Second Posted:  When all else is equal, the US dollar will fall. This is a direct fundamental link to current risk appetite trends where balanced markets encourage investors to seek out assets with higher return. With that in mind, the greenback is plagued by its exceptionally loose monetary policy which keeps it on the short side of most positive-risk positions. Just how weak is the dollar’s position in the yield spectrum? The yield on the two-year Treasury note yield has dropped for seven consecutive weeks to its lowest level since December (now at 0.476 percent) while the benchmark one-week US Libor rate has accelerated its descent to reach a record low 0.163 percent. For comparison, Australia’s relative rates are 4.84 and 4.78 percent; the Euro-area is floating 1.563 and 1.07 percent rates; and the UK is at 0.92 and 0.59 percent. The dollar can simply not compete when the market is looking for return. |
| Gold Holds Below Key Resistance- Well Supported on Debt Concerns Posted: |
| Euro Forecast Bullish but Greek Debt Crisis Remains Major Risk Posted: |
| Japanese Yen Direction to be Dictated by Broader Market Trends Posted: |
| Kiwi’s Run in Question as Markets Weigh Risk Tolerance Posted: |
| Aussie Continues to Respect 1.0710 Resistance- GDP Data Eyed Posted: |
| Greenback Closes Lower on the Week as Data Weighs Posted: The greenback continued to fall ahead of the long holiday weekend as another string of weaker than expected economic data weighed on the dollar. |
| Growth Data Next Week Comes Ahead of Key Rate Decisions Posted: The week ahead has an intriguing mix of data on the docket, with key growth releases on the docket for Australia and Canada. The United States also features two key releases, a gauge of American consumers’ confidence, and the jobs report on the American economy. |
| FX Headlines: Franc Continues Rally to Record Against Euro Posted: The Euro fell to an all-time low against the Franc as the funding and safe haven currency rallied across the board in the overnight. |
| FOREX: Swiss Franc Soars After IMF Calls for SNB Rate Hike, US Dollar Sold Posted: The Swiss Franc mounted a sharp rally against major currencies after the IMF called for the SNB to hike interest rates. The US Dollar continued its post-GDP slide in Asia. |
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