DailyFX - Forex Market News

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• FOREX: Euro May Fall Even if EU Delivers on Debt Crisis Measures
• EU Summit Details Due; Aussie Hit in Early Trade; Yen Still Bid
• Dollar Tapped into the Risk Trends the Evolve from the EU Summit
• Dollar Snaps Five Day Losing Streak- Index Poised for Further Gains
• Scalp Update- New CAD Setup, AUD, GBP Still Pending
• NZD/USD: Trading the Reserve Bank of New Zealand Interest Rate Decision
• USD Rallies Ahead Of EU Summit, Yen Intervention Threats Resurface
• Guest Commentary: Did the Liquidity Trap Cause the Hike in Gold Price?
• Euro Plummets After Euro-zone Finance Ministers’ Meeting is Cancelled
• Forex: Euro To Trade Heavy Ahead Of EU Summit, Loonie Battered By BoC
• Crude Oil Looks to Stocks for Direction, Gold Locked in Familiar Range

FOREX: Euro May Fall Even if EU Delivers on Debt Crisis Measures Posted: 25 Oct 2011 11:43 PM PDT The Euro may decline even if EU policymakers overcome their differences to deliver a credible plan to contain the festering Euro Zone sovereign debt crisis.

EU Summit Details Due; Aussie Hit in Early Trade; Yen Still Bid Posted: 25 Oct 2011 11:01 PM PDT Wednesday could be a very interesting trading day with investors anxiously awaiting the details from the EU Summit. However, there are already some other currencies on the move…

Dollar Tapped into the Risk Trends the Evolve from the EU Summit Posted: 25 Oct 2011 08:06 PM PDT We have entered the gravitational pull of this week’s top event risk: the European Union’s crisis summit. The influence of this particular driver reaches far beyond the euro and European assets.

Dollar Snaps Five Day Losing Streak- Index Poised for Further Gains Posted: 25 Oct 2011 02:08 PM PDT The Dow Jones FXCM Dollar Index (Ticker: USDollar) posted a marginal advance as cautious earnings reports and weak consumer confidence weighed on risk appetite. The index rebounded off key support and with traders eyeing significant event risk tomorrow.

Scalp Update- New CAD Setup, AUD, GBP Still Pending Posted: 25 Oct 2011 12:25 PM PDT Yesterday's loonie scalp triggered all our targets the BoC rate decision fueled a substantial rally in the USD/CAD. The recent price action has presented new opportunities for the pair while we continue to wait for the AUD and GBP scalps to trigger.

NZD/USD: Trading the Reserve Bank of New Zealand Interest Rate Decision Posted: 25 Oct 2011 12:02 PM PDT The Reserve Bank of New Zealand interest rate decision highlights the biggest event risk for the kiwi this week, and the developments coming out of the central bank is likely to influence the exchange rate as market participants weigh the prospects for future policy.

USD Rallies Ahead Of EU Summit, Yen Intervention Threats Resurface Posted: 25 Oct 2011 09:17 AM PDT The greenback rallied on Tuesday following the shift in market sentiment and the reserve currency may continue to gain ground over the next 24-hours of trading as investors scale back their appetite for risk.

Guest Commentary: Did the Liquidity Trap Cause the Hike in Gold Price? Posted: 25 Oct 2011 08:06 AM PDT I have stumbled upon an interesting article by Paul Krugman, a Nobel laureate in economics; the article offers an explanation for the hike in gold in the last few years. Krugman, who considers himself a deflationista, i.e. a person who believes the U.S. is currently in a liquidity trap, thinks that the gains in the gold is another confirmation that we are at a liquidity trap: basically in a liquidity trap people and businesses "sit on their money" and even if the interest rates plunge to zero (and the U.S. interest rate has been at zero for the past couple of years), investors are still reluctant to invest their funds.

Euro Plummets After Euro-zone Finance Ministers’ Meeting is Cancelled Posted: 25 Oct 2011 07:08 AM PDT Risk-appetite was fading into the start of trading in North America on Tuesday, following an exceptionally dovish policy statement by the Bank of Canada, when it was announced the Euro-zone finance ministers had cancelled their meeting for tomorrow.

Forex: Euro To Trade Heavy Ahead Of EU Summit, Loonie Battered By BoC Posted: 25 Oct 2011 07:00 AM PDT Market sentiment weakened on Tuesday as the stalemate in Europe heightens the risk for contagion, and the shift away from risk taking behavior may gather pace during the North American trade as the EU Summit comes into focus.

Crude Oil Looks to Stocks for Direction, Gold Locked in Familiar Range Posted: 25 Oct 2011 03:16 AM PDT Crude oil prices remain anchored to stocks as risk appetite searches for direction ahead of Wednesday’s EU debt crisis summit. Gold is confined in a familiar range.

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