Alan’s Forex Blog

Economic News   USD The greenback slipped lower against the JPY yesterday as U.S stocks tumbled on the back of heightened recession speculation. Therefore carry trades continued their sharp unwind as “riskier” positions were pared off by investors. However the greenback did manage to consolidate nearly all across the board today, in particular against the EUR on the back of comments from President Trichet that the ECB is concerned about the recent exchange rate volatility. Nevertheless,

Economic News   USD The greenback continued to experience losses yesterday, as the US currency could not rebound even amidst positive economic data. The release of surprisingly positive ISM service sector data had some investors convinced that the dollar would rise; instead it floated dangerously low versus a basket of major currencies. Most notably, was another record low versus the EUR as the major pair hit the 1.53 key level, spurring investors into even more aggressive bearish

Economic News   USD Yesterday the greenback remained range bound against the EUR and the GBP, failing to breach new lows. However the greenback did lose some ground against the JPY and the CHF after Fed Chairman Bernanke painted a gloomy picture of the struggling U.S housing sector in his speech yesterday. He mentioned that mortgage foreclosures are likely to remain on the increase coupled with falling home prices and therefore an active policy will be needed by the Fed in order to

Economic News   USD Yesterday, escalating fears of a recession in the U.S., hammered global stocks and sent the USD to record lows against the EUR for the 5th consecutive day. The greenback’s drop to an all time low yesterday came after the ISM Manufacturing report showed that U.S. manufacturing diminished for the second time in 3 months. The ISM index, which measures the activity level of purchasing managers in the manufacturing sector, dropped to 48.3 in February from 50.7 in January.

Economic News   USD The dollar began the new week in similar fashion to the way in which it closed last week; falling against most of it major currency rivals. Investors will now have to get used to the notion that the 1.50 key level for EUR/USD has been broken and will continue to rise. The major currency pair is currently above 1.5150 and looks to be set in its bullish trend, as data from the US continues to disappoint. The latest scare comes on investor worries regarding additional

Economic News   USD Yesterday, the USD fell to a record low vs. the EUR on expectations that the Fed will cut Interest Rates aggressively, despite stubborn inflation. Momentum in the EUR/USD pushed the pair through the closely watched 1.50 level and quickly surpassed 1.51 in the same session. The U.S. currency traded at the 1.5108 level vs. the EUR at 12:45 p.m. in Tokyo, after earlier touching the 1.5144 level. The greenback retreated after Bernanke said that the Fed will act in a timely

Economic News   USD The greenback continued to fall sharply yesterday on the back of more negative U.S economic data which further fuelled speculation of an aggressive Fed rate cut in March. The greenback fell to a new all time low against the EUR after U.S Consumer Confidence released well below expectations at 75.0 for the month of February, which is a 17 year low for this figure. There was some positive U.S data released yesterday as the PPI figure surprised on the upside, releasing at

Economic News USD The strong selling of USD was boosted yesterday after hopes that a possible rescue plan for ‘Ambac Financial Group’, the second largest U.S. bond insurer, would help limit the damage from the ongoing credit crisis. Also yesterday, the US Existing Home Sales for January fell to the lowest level in 9 years while prices slid for the 7th consecutive month, posing a threat to consumer spending; the largest part of the enormous US economy. By the end of the day, the USD remained