Forex News

Trading in financial markets was rather calm on Monday amid the absence of U.S. markets, and a lack of economic fundamentals from Europe, which forced thin trading in global financial markets, and accordingly, investors were cautious in trading, as renewed fears from the Euro Zone debt crisis continued to weigh down on confidence levels. Stock markets in the United States were closed on Monday. European stock indexes were mixed before closing on Monday, where CAC 40 was down by nearly 0.05% trading at 3950 and the DAX was higher by nearly 0.25% to trade around 7180, noting U.K. markets were also off on Monday. The U.S. dollar was slightly higher against a basket of major currencies, where the U.S. dollar index was trading at 74.96, compared with the opening level at 74.90. The Euro was little changed against the Dollar, where the EUR/USD pair traded at $1.4287, compared with the opening level at $1.4289, and the British Pound slightly dropped against the...

  The mixture between caution and holidays in both UK and US, will keep the broad markets volatile today. Volumes will be lighter than normal in the currency and commodity markets, and full volumes will return only on Tuesday. There will be a complete lack of data from Europe, the UK and the United States today. Therefore sentiment will be driven by the outlooks surrounding the European debt crisis and the global economic recovery. However the data expected for this week will be critical. On Friday the US will release the important Non Farm payrolls change, while on Wednesday the largest economy in the world will release its ISM Manufacturing report. The recent data from the US jobs sector and the manufacturing sector have proven to be lackluster, therefore market participants will be following the reports with caution and doubts, while Wall Street might witness some losses. Germanywill release the retail sales tomorrow, while Australia will release its first quarter GDP. The AUD  is moving...

Investors were feeling optimistic on Friday after data from the United States showed that personal income and spending continued to rise at a moderate pace in line with expectations, while inflation remained subdued, and consumer confidence rose, which bolstered optimism in European and U.S. markets. The optimism in markets encouraged investors to target higher yielding assets, and accordingly, major currencies rose against the dollar, while commodity prices rose on Friday. Stocks in the United States dropped at opening on Friday, where the Dow Jones Industrial Average was up by nearly 0.55% to trade around 12,470, while the S&P 500 index rose by nearly 0.60% to trade around 1,334. European stock indexes were also higher before closing on Friday, where FTSE 100 was up by nearly 1% trading at 5940 and the DAX was higher by nearly 0.40% to trade around 7142. The U.S. dollar was slightly higher against a basket of major currencies after opening with a downside gap on Friday, where the...

  "The global recovery is gaining strength and is becoming more self-sustained", said the group of right leaders in a statement at a two-day summit that will end today in Deauville, France, fueling confidence and risk appetite. This statement was enough to fuel optimism as a strengthening global economy will diminish debt concerns that increased recession worries lately, especially as woes mounted yesterday with Juncker saying the IMF may not release its 12 billion euros portion of the bailout for Greece next month. Leaders from the U.S., Italy, Japan, Germany, France, UK, Canada and Russia vowed to fight fiscal woes and focused on how to cut debt as "downside risks remain, and internal and external imbalances are still a concern". As the global economy is believed to gain strength, speculations are for demand on commodities to be sustained, especially since the weaker dollar raised the appeal of commodities. Oil is trading today above the $100 level, while gold is above the $1525.00 level. The rise...

Pessimism continued to dominate global financial markets on Thursday, where worse than expected economic data from the United States spread jitters across markets and weakened the U.S. dollar against majors, while the European debt crisis continued to weigh down on confidence levels, although news that China will buy Portuguese bailout bonds boosted the Euro against other majors. The U.S. Commerce Department released on Thursday, the second estimate for Gross Domestic Product for the first quarter of 2011, where the GDP report showed that the U.S. economy expanded at an annualized pace of 1.8% unchanged from the prior estimate, and worse than median estimates of 2.2%. Moreover, jobless claims rose unexpectedly last week, where jobless claims rose to 424,000, compared with the prior revised estimate of 414,000 and also worse than median estimates. Stocks in the United States dropped at opening on Thursday, where the Dow Jones Industrial Average was down by nearly 0.45% to trade around 12,345, while the S&P 500 index dropped...

  Optimism is seen across broad markets today although there were no fundamentals to support it. However commodities gained today, as investors were more confident about the global recovery, dragging the Asian and European stock markets higher. As the global economy seems to be in a good shape, investors seized the opportunity to turn there attention for a while from the deepening credit crisis, Japan’s economic struggle and the disappointing European and US economic data released lately. The rise in commodity prices gave investors an opportunity to catch their breath, however it doesn’t mean caution is off the table. Volatility will continue as Europe is facing some serious problems, as it tries to put someone in charge of the IMF and find solutions for Greece, Portugal and Ireland. There are no major economic data from Europe and UK today, therefore investors will continue focusing on Greece, as its cabinet passed new austerity measures and accelerated the asset-sale plans as the nation tries to avoid...

The sterling could rebound after it had been under pressure because of the MPC's member Mr. Fisher said that the wrong thing to do is raising the interest at the current uncertainty about the consuming spending to drag it down below 1.61 before finding support to come over 1.62 again with the rising of US new home sales of April to 323k from 305 in March while the market was waiting for just 300k to lift the risk appetite again in the beginning of the US session putting pressure on the greenback which was finding support in the recent days because the negative impacts of EU debt crisis negative implications on the business confidence. Fisher is one of the MPC members majority which is still preferring the silence keeping the interest rate unchanged at .5% and the current 200 billion assets purchasing plan of BOE fearing from taking a certain direction can emerge risks of the other and this maintained...

The pressure on the single currency has continued into this week too after Fitch's new downgrading of Greece to B+ from BB+ by the end of last week with a negative outlook after S&P downgrading of it to B as the doubts have increased about Greece ability to meet its debts maturity with no new clear decisions from the IMF or the EU to support it as it looks far from reaching its target of lowering the budget deficit to the GDP of 2011 to 7.5% with doubts about its austerity measures and its efficiency. The single currency slumped below 1.4 breaking its previous supporting level at 1.4017 after opening the week below its recent supporting level at 1.412 to reach 1.3965 before rebounding above 1.4 again trading currently at 1.403 and in the case of further worries to be added to the current market sentiment, the single currency can reach 1.3751 versus the greenback again over a longer rage as...