Forex Fundamental Analysis

Another positive move by global equities undermined the U.S. Dollar again on Thursday as currency traders exchanged their safe-haven positions for riskier bets.

U.S. Dollar is likely to strengthen in the near term, as data points to a gradual recovery in the U.S. economy and as traders remain wary of taking on excess risk.

After trading in a relatively narrow band versus the U.S. Dollar for several years, the New Zealand Dollar or “Kiwi Dollar” experienced several wild swings in 2008.

Yesterday I called for US equity markets to make a move toward losses. We did not see that however, while oil fell on the day, gold was notable higher.

The Japanese Yen has appreciated significantly in recent months as currency traders sought to hedge against the possibility of a slow or failed economic recovery.

Looking at what happened in the S&P 500 today, it looks as if the market has begun to move toward gains for the time being. However, looking outside of equities at commodities and treasuries the day did not look so good.

The Canadian Dollar has been under increasing pressure in recent weeks as fears of a failed economic recovery have pushed currency traders

The Brazilian Real has appreciated substantially over the past several years...

As the Bank of England concludes its July policy meeting today, expectations run high that an additional £25 billion of quantitative easing measures will be announced, even as the headline interest rate is held steady.

Yesterday, I expected today to see a pickup in risk appetite, but we did not get it. However, the S&P 500 breached 880 support level today, but was unable to sustain the move down.

EURUSD traded up to test resistance at 1.40 in late New York last night before Asia took the pair back down to the 1.3900 level.

The British Pound has come under increasing pressure during the past several trading days as indications grow that economic recovery in the U.K. is tepid at best.

An important aspect of trading is that recovering losses is harder than losing them. While this may be true in a few aspects, this article will just focus on the mathematics involved.

The Japanese Yen is set to benefit from renewed fears about the pace of the global economic recovery. Increasing signs from the data released last week and from politicians’ comments in recent days all point to an anemic recovery at best, with little hope for a sharp rebound in the world’s major economies.

Crude oil has finished a head and shoulders pattern today, which began last week. Combined with oil closing below $70 today, it looks as though oil will make a move lower tomorrow.