Forex Go!

Risk FX was mildly higher in early morning European trade, lifted by supportive comments from PBOC governor Zhou and slightly better than expected data from EZ GDP. The EUR/USD recovered the 1.3150 level but remain contained below 1.3200 as traders kept a wary eye on Athens, while AUD/USD  was considerably stronger rising to  1.0775 within striking distance of its  recent highs as risk sentiment proved supportive.

PBOC chief Zhou Xiaochuan pledged that the country’s central bank will increase its holdings of euro-denominated assets. Zh

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The Japanese yen is lower against most of its major counterparts today, dropping as forex traders consider increased liquidity in global markets and successful bond auctions in Europe.

With forex traders concentrating on what’s happening in Europe, and hopeful about what’s next, the yen remains mostly lower today, even as equities struggle. Yen is down against the euro as successful bond auction in France and Spain provide some help for the 17-nation currency.

Also helping high beta currencies, and putting downward pressure on the yen, is the recent decision by the Chinese to cut reserve requirements, effective December 5th. This news, plus the increase in liquidity thanks to an agreement by several central banks to keep the US dollar cheaper, is providing support for higher yielders like the euro.

Japanese officials aren’t likely to be bothered by this weakness; on the contrary, the yen is preferred weak. Manufacturers have been considering leaving

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Today I want to tell you about a profitable expert advisor that you can download for free. Its called Forex Catapult and its been created by Casey Stubbs.

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With U.S markets closed for Martin Luther King Jr. Day, we have had a slow start to a busy trading week.   No major economic data was released this morning and risk appetite has held up surprisingly well considering the big shocking announcement from Standard & Poor’s on Friday and the rating agency’s decision to downgrade the rating of the EFSF to AA+.   The EUR/USD and many other major currencies took the news in the stride but in our opinion, the stability of the EUR/USD is temporary.   This is a very busy trading week filled with important economic data from many parts of the world. Read more…

The euro tumbled from its highs at the start of European trade on concerns over a possible second bailout of Ireland, but recovered to trade back to the 1.2800 figure as positive risk sentiment carried high beta FX higher. Earlier, the single currency was pressured by the story in the Irish Times which quoted Citibank economist William Butler stating that the Emerald Isle needs a second bailout   to reduce its debt service costs. Mr. Butler was quoted as saying that, “the most attractive option from Ireland’s point of view would be a reduction on the interest it pays on an outstanding €30 billion in promissory notes, issued mostly to deal with the collapse of Anglo Irish Bank.” He said Ireland is paying in the region of 6 per cent on this money but it could be refinanced at 3 per cent by the European Financial Stability Facility.    

As we noted earlier, “Although Ireland has been touted as a poster child for sound economic recovery after it instituted draconian budget deficit reforms and returned back to growth, the latest data from the country suggests that it may be sliding back into a recession. Yesterday Ir

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Canadian dollar is advancing on good economic news out of the US. According to the Bureau of Labor Statistics in the US, 120,000 jobs were added. This news is good for Canada, and the loonie advanced accordingly.

Because the US is Canada’s largest export market, the news that the employment picture is improving in America is positive for the loonie. It’s also helpful that US consumers seem ready to open their wallets this holiday shopping season, boosting their spending.

Canadian dollar is also benefitting from a general improvement in risk appetite. The situation in Europe looks as though it’s moving toward recovery — at least for now — and that is helping. Equities in the US are higher on good news. If the US economy recovers, Canada is likely to benefit.

Also contributing to Canadian dollar strength are higher oil prices. The US gets most of its oil from Canada, and the resource is a source of revenue for Canada. Higher oil prices generally help support the loo

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Today I want to talk about some of the forex books you can buy on the Kindle. If you havent yet bought a Kindle (which you can buy here from Amazon.com or Amazon.co.uk), I highly recommend you do so because I bought one earlier this year and its one of the best things Ive ever bought.
 
It is essentially an ebook reader that stores thousands of books, and allows you to read any of the books you have in your collection (and download new books) on the move whenever you like.

- Forex ebooks (for the Kindle) on Amazon.com
 
– Forex ebooks (for the Kindle) on Amazon.co.uk

  It is clear that everyone from foreign central banks to rating agencies are fed up with waiting around for the Europeans to come up with a rescue plan and decided to take matters into their own hands. By placing Eurozone countries on credit watch negative and extending this warning to the EFSF, S&P is effectively telling investors that the failure of EU Leaders to make substantial progress this week could prompt a wave of downgrades across the region. In anticipation of more trouble ahead, the Reserve Bank of Australia cut interest rates by 25bp last night to 4.25 percent.   Interestingly enough, the Bank of Canada wasn’t nearly as concerned as the RBA due in part to slightly stronger than projected U.S. growth.   However Canada is in a unique position in that they are less exposed to Europe and China and more heavily reliant on the U.S.   The central banks of New Zealand, the Eurozone and the U.K. on the other hand are more exposed to the problems in Europe and Asia and will most likely share the cautionary views of the RBA.

Risk FX was mildly higher in quiet pre-NFP trade boosted by 1.5% gains in European equities, but pair failed to generate much momentum with EUR/USD staling ahead of the 1.3500 barrier while AUD/USD was unable to pull away from 1.0250 as currency traders remained on the sidelines ahead of the key US employment report. 

German Chancellor Angela Merkel stated today that development towards a fiscal union was on the agenda for the EU Summit scheduled for December 9th. Speaking in Berlin, Ms. Merkel also stated that the EU crisis may take years to resolve as she tried to temper market expectations ahead of the meeting.

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The Great Britain pound closed higher against most of the major currencies, including the Japanese yen, the euro and the Swiss franc, though fell versus the US dollar, as the ongoing debt issues in the European Union made traders to consider the sterling something like a refuge from Europe’s problems.

The UK stocks rose for the first time in 10 sessions. The FTSE 100 Index advanced 0.7 percent. The yield on the gilts maturing in 10 years increased 14 basis points to 2.30 percent.

The minutes of the Bank of England monetary policy meeting released on November 23 were rather dovish. The Monetary Policy Committee members voted unanimously for keeping the main interest rate at the record low 0.5 percent and the asset purchases program at £275 billion. Some policy makers even proposed an additional stimulus to help the economy that is clearly faltering.

GBP/USD dropped from 1.5495 to close at 1.5432, while GBP/JPY was up from 119.47 to 119.94 and touched the high of 120.44 intraday. GBP/CHF closed at 1.4353, higher than the openin

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