Forex Daily Forecast, Analysis and Prediction

The Canadian Dollar has been one the most dominant currencies during the last few weeks. While there were no massive rallies in its pairs, in most cases the CAD appreciated in a steady manner, as much as a few hundred pips.

The larger picture of the Euro-British Pound is not clear at all, with every major price swing getting smaller.

The Australian Dollar has slowed down its torrid advance recently. After making an all time high at 1.02555, it fell to 0.9800 in early January.

The last few weeks have brought some strong moves in the Euro – Canadian Dollar pair. In January, the Euro surged and pushed this pair to 1.3775, while so far in February, responding to renewed strength in the Loonie, the price dropped over 500 pips, to 1.3212.

After sinking to an all time low of 0.9299 at the end of December, the USD-CHF has been trying very hard to reverse. The market rallied to about 0.9785, pulled back and made another attempt, which stalled at 0.9775 late last week.

Not that long ago, in late December 2010, the Australian Dollar – New Zealand Dollar was in a strong bullish trend.

The long-suffering British Pound might be turning the tide. Following prolonged downtrends, it made multiple all time lows in relation to many other currencies.

The British Pound has had a very nice rally, which started around the Christmas time last year.

The Canadian Dollar remains strong, especially in relation to the US Dollar.

The Euro surprised many analysts and traders in early 2011. In the midst of the sovereign debt crisis gripping the European Union, the common currency managed to stage a strong and broad rally.

During the last year, we witnessed some currencies posting strong gains in relation to the US Dollar.

Just like most other Yen crosses, the EUR-JPY has not moved much in recent weeks. That is subjective, of course, but when compared to the past couple of years, the current behavior of this pair is not impressive by any matrix.

The Japanese Yen has become a poster child for an "indecisive market". With the Bank of Japan trying to convince the world that the JPY is too strong and should weaken, while market participants are seeking perceived "safety" of the Yen.

In recent weeks, the British pound had been enjoying a revival. It rallied against many currencies, including the Swiss Franc, where it rebounded from its all time low.

We keep hearing about the Canadian Dollar getting stronger, with the Bank of Canada constantly claiming that poses a threat to the domestic economy. The more accurate description is that the CAD is strong, but has not really made much progress recently.