DailyFX - Forex Market News

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• Euro – Is this the Recovery or the Calm before the Storm?
• Forex Weekly Trading Forecast - 06.11.2012
• Euro: Officials Scramble to Stabilize Spain Before Greece Returns
• New Zealand Dollar Rebound Threatened by Dovish RBNZ
• Canadian Dollar To Consolidate Above 1.02 On More Dovish BoC
• AUD Outlook Weighed By Rate Expectations, Flight To Safety
• British Pound Heavy with Posen Set to Speak, Production Data Due
• Dollar Pauses as Market Awaits Another Wave of Crisis or Stimulus
• Guest Commentary: Trading in the summer? It’s going to be a Hot One
• Japanese Yen Aims Higher as Eurozone Crisis Returns to the Spotlight
• USD Correction Muted By Spanish Woes, GBP To Track Sideways
• Guest Commentary: Gold & Silver Daily Outlook 06.08.2012
• Euro Slides as Japanese Yen and US Dollar Make Comeback Post-Bernanke
• Euro Hit By Speculation For Spanish Bailout, Range-Bound Prices Ahead
• Commodities Fall on Fading QE3 Hopes, Spain Rating Downgrade
• USDCAD: Trading Canada’s Employment Report

Euro – Is this the Recovery or the Calm before the Storm? Posted: 09 Jun 2012 03:52 PM PDT he Euro bounced sharply off of multi-year lows in a week of impressive recovery for the US S&P 500 and broader financial markets. Yet a fresh wave of downgrades and generally sour news out of the Euro Area meant that the EUR ended only modestly higher against the safe-haven US Dollar(ticker:USDOLLAR). What can we expect in the week ahead?

Forex Weekly Trading Forecast - 06.11.2012 Posted: 08 Jun 2012 10:51 PM PDT Panic has settled this past week, but a perceptible lack of stimulus or guidance by the Fed and ECB has left the market's in a predicament. The fundamental outlook continues to deteriorate and there is heavy event risk in the second half of June. So where does that leave us over the coming week? Watching Spain and gauging the primal balance of risk versus reward.

Euro: Officials Scramble to Stabilize Spain Before Greece Returns Posted: 08 Jun 2012 10:38 PM PDT The euro’s progress this past week was a mixed bag. Where the currency recovered lost ground against key safe havens (the US dollar and Japanese Yen), the investment currencies outpaced the currency.

New Zealand Dollar Rebound Threatened by Dovish RBNZ Posted: 08 Jun 2012 09:59 PM PDT The New Zealand Dollar was the second best performer this week, finishing just 0.12 percent lower against the top performer, the Australian Dollar. The Kiwi crushed the safe haven currencies, the Japanese Yen and the US Dollar, appreciating by 3.72 percent and 2.05 percent, respectively. As Currency Strategist Ilya Spivak frequently notes, the New Zealand Dollar has a very tight correlation to the MSCI World Stock Index, so the commodity currency is at bay to global risk trends.

Canadian Dollar To Consolidate Above 1.02 On More Dovish BoC Posted: 08 Jun 2012 09:54 PM PDT The Canadian dollar ended the week higher against its U.S. counterpart as the Bank of Canada continued to talk up expectations for a rate hike, and the loonie may appreciate further in the following week should the economic docket instill an improved outlook for the region. After keeping the benchmark interest rate at 1.00%, the BoC reiterated that it ‘may be appropriate’ to start withdrawing monetary support, but went onto say that higher borrowing costs will be ‘weighed carefully’ as the central bank sees a risk of undershooting the 2% target for inflation.

AUD Outlook Weighed By Rate Expectations, Flight To Safety Posted: 08 Jun 2012 09:45 PM PDT The Australian dollar fell back from a fresh monthly high of 1.0002 as market participants scaled back their appetite for risk and the high-yielding currency may face additional headwinds in the week ahead as the Reserve Bank of Australia continues to embark on its easing cycle. Despite the slew of positive developments coming out of the $1T, the RBA held a dovish tone for monetary policy after lowering the benchmark interest rate by another 25bp in June, and it seems as though the central bank will take additional steps to stem the downside risks for the region as China – Australia’s largest trading partner – faces an increased risk for a ‘hard landing.’

British Pound Heavy with Posen Set to Speak, Production Data Due Posted: 08 Jun 2012 09:28 PM PDT The British Pound had a mediocre week, finishing in the middle of the pack among the major currencies covered here at DailyFX. It was relatively unchanged against the Euro, finishing a mere 0.02 percent higher, while it rallied for 2.35 percent against the Japanese Yen, the worst performing major this week.

Dollar Pauses as Market Awaits Another Wave of Crisis or Stimulus Posted: 08 Jun 2012 09:00 PM PDT After five-week rally, the US dollar finally closed in the red this past week. Yet, looking at the fundamentals behind this capitulation, we are looking at a shift to consolidation rather than an immediate reversal. To dramatically turn the tables on the greenback, we must shift the fundamental bearings on sentiment – and that is exceptionally difficult to do given the underlying trends before us.

Guest Commentary: Trading in the summer? It’s going to be a Hot One Posted: 08 Jun 2012 07:00 PM PDT The summer months of June-August are usually a bit quieter in the markets, with August being especially quiet. The lower liquidity means different trading characteristics.

Japanese Yen Aims Higher as Eurozone Crisis Returns to the Spotlight Posted: 08 Jun 2012 06:31 PM PDT The Yen continues to track US Treasury bonds, with the correlation between a trade-weighted index of the currency’s average value versus its top counterparts and the benchmark 10-year note now at 0.75 (on 20-day percent-change studies).

USD Correction Muted By Spanish Woes, GBP To Track Sideways Posted: 08 Jun 2012 08:55 AM PDT The greenback bounced back on Friday, with the Dow Jones-FXCM U.S. Dollar Index climbing to a high of 10,242, and the reserve currency may continue to appreciate against its major counterparts as market participants scale back their appetite for risk.

Guest Commentary: Gold & Silver Daily Outlook 06.08.2012 Posted: 08 Jun 2012 08:09 AM PDT Gold and silver changed direction and plummeted yesterday after the testimony of Bernanke in the Senate didn't bring the kind of news bullion traders had hoped for.

Euro Slides as Japanese Yen and US Dollar Make Comeback Post-Bernanke Posted: 08 Jun 2012 07:12 AM PDT With no new easing stimuli measures coming from the globe’s major central banks, and the first Chinese rate cut in four years potentially signaling rocky waters ahead, market participants have jumped back into the Japanese Yen and the US Dollar. Meanwhile, rumors of a Spanish bailout have begun to emerge.

Euro Hit By Speculation For Spanish Bailout, Range-Bound Prices Ahead Posted: 08 Jun 2012 06:15 AM PDT Speculation for a Spanish bailout sapped risk-taking behavior on Friday and the ongoing turmoil in the euro-area will continue to drag on market sentiment as European policy makers maintain a reactionary approach in addressing the debt crisis.

Commodities Fall on Fading QE3 Hopes, Spain Rating Downgrade Posted: 08 Jun 2012 12:00 AM PDT Commodity prices are under pressure after Fed Chairman Ben Bernanke disappointed hopes for additional stimulus while Fitch cut Spain’s sovereign credit rating.

USDCAD: Trading Canada’s Employment Report Posted: 07 Jun 2012 11:00 PM PDT Job growth in Canada is expected to gather pace in May and a pickup in employment may prop up the Canadian dollar as it instills an improved outlook for the region.

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