Alan’s Forex Blog

Global financial markets appear on the cusp of climactic price movement. Nearly every asset class has exhibited high volatility as tensions increase and market participants reveal the raw emotions of fear and greed. Fresh all-time highs and lows can be found in multiple areas, from currencies to commodities, moving hand-in-hand due to their US dollar relationship. After all, commodities are dollar-denominated, so a weakening Greenback makes food, energy, and metals cheaper to non-US investors

Euro traded at a record high versus the dollar as views the Fed injection will not suffice U.S. Dollar Trading (USD) was weaker across the board versus a number of majors trading at record lows once again. Many of the moves were on views from Citigroup Inc. to Goldman Sachs Group Inc. which expect the Federal Reserve’s plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending. In U.S. share markets the NASDAQ was down -61.45 points (-0.69%) whilst

After Excessive trading volatility conditions contained the forex market on the news of the fed new temporary program which can solve the liquidity problems of the sub-prime mortgages in compensate of treasury bonds, the market started back to reevaluate the conditions lowering the effect of the package impact pushing the single currency up to a new all times low at 1.5573 and the yen lower than 101 for the first time since 1995. the joint action can give back some stability and trust after

Hi! Welcome to a new day in forex market. As usual dollar declined against its rivals yesterday, setting new all time lows against Euro and Swiss Franc, and a more than twelve years low against Japanese Yen, as market participants are betting the Fed’s new liquidity push would do little to help the weak American economy or pare more Fed rate cuts. Euro zone industrial production better than expected reading trigger a rally against greenback all across the board, despite Jean-Claude Trichet

Even in spite of some of the markets involved having exhibited increasing volatility lately (not meaning, however, that I have disrespected the risks) – I continue to have a fairly large exposure long silver and gold, long Euro against the US dollar, and long Euro against the British pound.

The USD fell to new all-time lows against the European single currency (EUR) just one day after a Fed plan to ease the credit crunch inspired sharp USD gains.  EUR/USD rose from about 1.5450 in early NY trading and peaked in the late afternoon after making a high around 1.5570.  The greenback was sold heavily in Asian and European trading, as Chinese officials indicated a need to hold stronger currencies in their FX reserves at the expense of the USD.  Mid-east sovereign wealth

From a long term perspective, $/yen has finally reached the downside target since last summer at the base of the triangle-type consolidation that has been forming since 1999 (currently at 101/102) . In the bigger picture, this scenario raises potential for an important bottom to form nearby (see shorter term below), with at least 3-6 months of gains back toward the ceiling of the pattern after (currently at 123, see “ideal” scenario in red on weekly chart below). However, with scope for more

FED’s plan to swap 200 bln. USD mortgage backed bonds with US government bonds will make stocks go higher as well as the USD. But only for a while. Overnight News Bullets GE Wholesale Price Index MoM/YoY (Feb) out at -0.2%/6.0% vs. 0.5%/6.7% exp. SW CPI Headline MoM/YoY (Feb) out at 0.4%/3.1% vs. 0.6%/3.2% expected. SW CPI Underlying MoM/YoY (Feb) out at 0.4%/2.0% vs. 0.5%/2.2% expected. SW Activity Index Level (Jan) out at 122.9 vs. 123.3 prior. UK DCLG House Price YoY (Jan) out at 8.0% vs.