Mixed Bag of Economic Data for the US

The US dollar continues to fluctuate against other currencies even after the release of the US consumer price index. The consumer price index rose just 0.4% (0.5% expected) in April, compared to March's 0.6% increase. However, the core....

Will US Inflation Data Disappoint?

The forex market is currently in a cautious mood, with big players not willing to pile up their positions ahead of tomorrow's US consumer inflation data. The CPI core rate is forecast to rise to +0.2 from +0.1, but.....

Choppy Market Conditions Ahead?

What happened last Friday in the forex market? The US dollar went down modestly against GBP, CHF and EUR, but regained strength against JPY. As a recap, US retail sales showed a sharp drop in April, and wholesale prices...

Carry Trades in Jeopardy Again

Here it comes again? I'm talking about the precarious state of the carry trade business in which people borrow in Yen to invest in other foreign investments such as bonds, stocks or real estate. Yesterday, currency pairs with the..

Will Interest Rates Be Raised Or Not?

I, like many other forex traders, have one thing on my mind at the moment: The Fed FOMC rate announcement at 1815 GMT. The FOMC members are expected to keep interest rate steady at 5.25%. People are neither too bullish or bearish on the US dollar till...

French President Unhappy With Euro Strength

What has the Japanese yen got to do with the recently concluded French presidential election? French President-elect Nicolas Sarkozy won the presidency of the Euro area's second- largest economy after a campaign in which he attacked the European....

What to Expect in the Currency Markets

The forex market has been relatively quiet today - I guess it must be a case of the Monday Blues, in addition to the UK holiday today. According to the latest Commitment of Traders report, there has indeed been a reduction of Euro longs...

Euro is a tricky, tricky currency

The US dollar is still reeling from the disappointing ADP private-sector employment survey from yesterday, as there is great fear in the forex market that the non-farm payrolls number on Friday could come in lower than expected, and thus disappoint as well. This nervousness...

Will Poor Payrolls Thwart USD Recovery?

Lots of exciting action in the forex market again today. The US dollar initially went up against other currencies in the Asian and European session, but later fell in a dramatic fashion on payrolls data published by ADP, which...

US Manufacturing Stronger Than Expected

It has been a rollercoaster ride for the US dollar today. Initial USD weakness has been reversed by the surprise strength of the ISM manufacturing data - one of the key releases this week. The April ISM manufacturing business index came out at...

Range Conditions in Currency Markets

Sideways movement across most currency pairs today. There is nothing in store for breakout traders, but if you are the type that prefer to trade bounces, there was quite a bit of opportunities today in the half-asleep forex market. EUR/USD bounced..

Will EUR/USD Aim for 1.4000?

In this coming week, I will be eagerly anticipating what is going to happen to EUR/USD after it reached an all-time high of 1.3681 on Friday. The big question now is: Will EUR/USD aim towards 1.4000? That is a possible scenario, until we hear some unhappy complaining...

Euro Bulls On Buying Spree

Yesterday we saw the US dollar bulldoze its way upward, but today, its rally against other currencies came to an abrupt end. And guess what? EUR/USD hit an all-time high of 1.3682 in...

US Dollar Rallies Against Other Currencies

Yesterday, the Euro bravely took a stab at its record high against the US dollar, but today, EUR/USD suffered from strong selling pressure as Euro bulls took the opportunity to take profits. The US dollar has thus staged a strong comeback, causing EUR/USD...