Canadian Dollar Gets a Boost in Forex Trading

Canadian dollar is getting a boost today in forex trading, receiving some help from disappointing US economic data. Indeed, a lot of the loonie’s gains today are coming as a result of disappointing news, and less about solid advances made by the Canadian currency.

US GDP data for Quarter 1 came in below expectations. Analysts had expected an annualized rate of 2.7 percent, but instead saw 2.2 percent. The disappointment is an indication that economic growth in the United States is slowing. Given that the Federal Reserve policy statement indicated that Ben Bernanke and company are ready to engage in more quantitative easing if necessary, this slowing economic growth is  seen as a possibility of more easing.

The result is that the loonie is getting a boost against the greenback. Canadian dollar is seeing improvement right now as US dollar sentiment fall back. Even though oil prices are retreating a bit, the loonie still maintains the upper hand against the greenback. For now, Canada’s economy is seen as more ready for growth (some expect the Bank of Canada to raise interest rates soon), and that is translating into gains for the loonie.

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Euro Slips as Spain Enters Recession

The euro fell today as Spain’s economy entered a recession, fueling concerns that the financial crisis is spreading across Europe. That was the first day of decline against the dollar after four days of gains and the third consecutive session of losses against the yen.

Spain’s gross domestic product fell 0.3 percent in the first quarter from the previous three months. The economy shrank at the same rate in the fourth quarter of the previous year, meaning that Spain’s economy is declining for two quarters in a row and that means the country entered a recession. It is really no surprise, considering that Spain has huge unemployment of 25 percent. The nation’s ministers gather today to discuss budget cuts, but it is very likely that Spain would be forced to request a bailout.

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South Korean Manufacturers Feel Confident, Won Jumps

The South Korean won climbed today as nation’s manufacturer confidence jumped to the nine-month high and hopes for growth of the US economy boosted prospects for higher-yielding assets of emerging markets.

The Bank of Korea reported that the index of South Korean manufacturers’ outlook for May climbed to 90 from 85 for April, reaching the highest level since August 2011. The index for non-manufacturing sector expectations was up from 82 to 85. The won also gained as the growing US economy is expected boost demand for exports from emerging markets.

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US Dollar Index Recovers Somewhat as Other Majors Show Vulnerability

US dollar index is recovering somewhat today, thanks to vulnerability shown by some of the other majors today. Once again, the euro is showing a degree of weakness in forex trading, as is the pound. The yen, however, is higher against the US dollar today as a measure of risk aversion makes an appearance.

A lot of what is helping the US dollar today is based around the idea that perhaps the Federal Reserve‘s recent announcement about quantitative easing isn’t so bad. Many point out that it makes sense to keep QE3 on the table as long as the US economic recover is sluggish. However, it doesn’t mean that it will be used. As a result, some are rethinking their dollar selling toward the end of last week.

Additionally, with the eurozone back in the spotlight, the euro is faltering again. The upcoming ECB meeting is raising fears of a rate cut. With the eurozone economy slowing and heading toward recession, there is an expectation that the ECB might cut rates in order to give the flagging economy some help. In Britain, the outlook continues to be disappointing as well, and focus on PMI has some cautious.

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Won Drops vs. Euro on Threat of Economic Slowdown in Asia

the South Korean won fell against the euro today on concerns that problems in Europe crippled economic growth of Asian nations. The currency was also down versus the US dollar, but later rebounded.

South Korean exports unexpectedly fell 6.6 percent on year-over-year basis in January, posting the first decline in two years. Annual consumer price inflation was at 3.4 percent, the lowest rate since January 2011. Other Asian countries also showed signs of economic slowdown, though fundamental data from China was surprisingly good.

USD/KRW climbed from 1,125.7000 to 1,129.7999, but retreated and traded at about 1,124.3500 as of 10:50 GMT today. EUR/KRW rose from 1,474.3500 to 1,476.2500.

This entry was posted on Thursday, February 2nd, 2012 at 2:56 pm and is filed under Forex Trading,

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Euro Rebound as Eurozone Manufacturing Expands

The euro rose today, erasing its previous losses, after a report showed that eurozone manufacturing improved this month, easing concerns about the negative impact of the European financial crisis on the region’s economy.

Final eurozone PMI figure was 48.8 in January, near the flash estimate of 48.7 and a solid increase from the December reading of 46.9. Germany with its robust growth was the main contributor to the increase, followed by Australia and Netherlands that demonstrated a modest increase of output. Greece, unsurprisingly, showed the worst performance as its production was declining with the record pace. The Stoxx Europe 600 Index advanced as much as 1.5 percent.

EUR/USD was up from 1.3083 to 1.3135 as of 12:23 GMT today after falling to the daily minimum of 1.3026. EUR/JPY went higher from 99.78 to 99.95, following the drop to 99.24 — the lowest level in more than a wee

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Features forex market

financial analysts estimated daily volume of currency trading in the forex market at about $ 3 trillion (3 

trillion dollars a day), where hundreds of millions of dollars are bought and sold every few seconds. As an example, showed a survey carried out by the Arab Advisors Group, said about 70 000 Jordanian trading in foreign currencies at the margin (Forex) in amounts nearly U.S. $ 787 million.

And are traded by buying and selling major currencies, which holds the basic share from operations in the forex market is the U.S. dollar base currency and the euro and the pound sterling and the Swiss franc and Japanese yen, Australian dollar, Canadian dollar and the currencies of other Arab and foreign countries.

The economists that the currency markets are the markets created by the unusual technical and facilitated the spread in recent times, and technology influenced the forex market, this market was able to attract large groups of investors over the past years thanks to the spread of technology and communications.

In contrast to several markets spread across the market, the currency market is not an elitist market fluent deal with only a few people, but the lack of interest in media coverage of economic activities, trade currency to make this market away from the public. Even people who do not have experience in dealing with the Internet and computer, can trade through telephone calls to brokerage firms and to accept the projections indicate a large segment of young Saudi and Gulf currencies to trade in future periods

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