Forex Fundamental Analysis

U.S. Dollar Trading (USD) felt more pressure as investors continued to pressure the Dollar on the back of more rumblings from Asian disquiet with US debt. Pending Home sales kept the mood in the market positive with April up 6.7% vs. 0.5% forecast.

U.S. Dollar Trading (USD) enjoyed another brief bounce in the Asian session as investor concerns about the GM bankruptcy and weak stocks weigh on sentiment. The main source of gains was against the Yen which came under heavy selling pressure as moody affirmed the US AAA Bond rating.

U.S. Dollar Trading (USD) finished the day broadly unchanged as holidays in the UK and USA kept volume low. Some action was seen in Asia as news of a Nuclear test from North Korea caused risk aversion to notch higher.

The British pound is recovering from an earlier belly-ache brought on by the specter of a loss of its AAA credit rating. According to Standard & Poor’s, there is a one-in-three chance that the government’s incessant spending to stave off recession will end in a loss of its ranking.

U.S. Dollar Trading (USD) came under pressure at the start of the European session with GBP breaking above resistance at 1.5350 to fresh year highs and taking AUD also to new highs above 0.7700.

Markets managed to turn on a sixpence again yesterday, recouping Friday’s losses - and more – amid a slew of more positive inputs. First off, markets took their cue from the impressive rally in Indian equities (up 17%+) after the weekend election result, triggering a full-day circuit breaker after the first 2 hours!

U.S. Dollar Trading (USD) received support from the changing mood in the markets with last week being the first in 2 months to show significant Equity downside. Currencies took their cue and dropped against the safe haven USD quite significantly. JPY continued to strengthen outpacing the dollar.

The dollar fell below the psychologically-important JPY95.00 mark for the first time in two months versus the yen in Asia Monday, as drops in regional shares and signs of swine flu spreading in Japan fueled demand for what dealers see as safe currencies. The U.S. currency fell to JPY94.55, its weakest level since JPY94.15 on March 20.

U.S. Dollar Trading (USD) felt more pressure as traders tested the dollars downside once again. A small rise in US stocks and better than expected US trade data prompted more risk taking.

Investors have begun the week selling equities, with US stock indices opening in the red and the DJIA and S&P500 staying there through mid morning.

U.S. Dollar Trading (USD) finished the week at multi-month lows against the Euro as better than expected US Job Data allowed risk appetite to jump another notch higher. April Non-Farm Payrolls were down -539K vs. -590K forecast.

There are two standard definitions of recession. The first, two succeeding quarters of negative GDP is traditional, straightforward and evident as the statistics are released.

Non-Farm Payroll beat expectation by showing -539k contraction in April comparing to -expectation of -620k and much better than upwardly revised -699k in March.

U.S. Dollar Trading (USD) finished the week at multi-month lows against the Euro as better than expected US Job Data allowed risk appetite to jump another notch higher. April Non-Farm Payrolls were down -539K vs. -590K forecast.

US equities were bullish today. The DOW gained 101.63 points, up 1.21%. The S&P gained 15.73 points, 1.74%, to close well above the 900 level at 919.53.