US Dollar and Market Conditions
The United States’ dollar continued to fall again on Wednesday, February 01, 2012, in relation to the Euro, the British pound, and the Japanese yen. The Euro was the biggest mover, going up about 0.60 percent in relation to the dollar. This marked the latest in a choppy week where the EUR/USD has see-sawed back and forth between 1.305 and 1.320. At the time of this writing, the EUR/USD stood at 1.3167. Fundamental analysis is dictating the movement of thisRead more ….
What the Greek?
The permanent debt relief plan for the European Union is still being discussed, but pessimists ruled the market. The governments within the EU are struggling to create jobs and promote growth, but the debt talks that were supposed to originally cover these topics has mostly progressed into how best to bail out the nation of Greece. Restructuring the Greek debt has become a monumental task and it has deservingly commanded the bulk of the EU’s discussion. Still, stocks are droppingRead more ….
Where is the Yen
Japan recently posted a trade deficit for the year 2011. This is the first deficit that Japan has reported in 31 years, making it very newsworthy. The deficit stood at 2.49 trillion yen, or about $32 billion in U.S. funds. Caused by the earthquake and the tsunami that followed it, Japan’s economy struggled in 2011. And in the face of a strong yen, outside investments in Japan’s businesses and internal economy faltered. For the month of December, 2011, the exportsRead more ….
The Pound Versus Everything
The British pound sterling is currently struggling to hold its value, despite the good news out of the Euro zone that Greek debt talks are nearing an end. The pound had a minor rebound on Monday, January 23, 2012, but experts expect it to give up ground soon. The Bank of England is coming to some conclusions in the near future that probably will include a need to increase monetary support. There is also talk that the BoE will askRead more ….
Euro Currency Still Under Pressure
The biggest worry of the Forex market is now Greece. Talks in Greece have been met with skepticism of whether or not the nation can repair its economic situation. The country is looking for a second bailout, but no decision has been officially reached that can grant Greece this privilege. Greece officials are scheduled to meet with the Institute of International Finance on January 23rd in order to help the beleaguered nation avoid defaulting on their promises. With the proposedRead more ….
Borrowing of Money Falls
The Euro’s price has dropped considerably in relation to the U.S. dollar over the last three months. The surplus cash held by European banks has helped a little bit, but the debt crisis has overshadowed this. Prices have dropped from 1.42 EUR/USD down to 1.28 over the last three months, showing the world just how precarious the debt crisis is. Meanwhile, banks are fighting to keep the Euro’s levels as high as possible in order to encourage more borrowing. ItRead more ….
European Woes
When the news of a potential bailout in regards to the European debt crisis emerged, U.S. markets rallied hard. The Dow Jones Industrial Average rose by over 300 points (2.7 percent) and the Nasdaq increased by about 3.5 percent. As you can see by this, Europe’s problem economy spells out problems for the rest of the world as well. In the U.S., even the rumor of a successful bailout can reverse a sinking stock market in a sudden fashion. WhenRead more ….
Euro Troubles Keep Coming
The Euro is in trouble and it is starting to show. With the growing crisis in Europe over debt and recession, the entire world economy has been shaken up in drastic fashion. Because the U.S. has also been experiencing their own economic problems, the true depth of the European currency’s problems has not yet been felt, but the warning signs of a major drop in value are all there. Many European countries are going into a recession, and the possibilityRead more ….
Where the Dollar is Against the Euro
The Euro has been dropping quite a bit in relation to the U.S. dollar. As the debt crisis in Europe extends, faith in the Euro has faltered and many investors have switched to the U.S. dollar for safety. This has come to be even though the U.S. is facing problems of its own. With a growing national debt and high unemployment rates, the U.S. economy is in trouble itself. But thanks to its past record of stability and growth, investorsRead more ….
The Effect of News Reports
Reports and other fundamental economic data have a profound effect upon financial markets. Even the anticipation of a Forex news report release can spark a flurry of buying or selling. For example if a report on employment rates is due to be released at noon, the morning trading will reflect what traders think that report states. This trading of the news is a popular method of trading both stocks and currencies. But how do people know which way to goRead more ….
