Action Forex

The Japanese economy issued today many date that showed the nation's export led recovery is losing steam, especially after the industrial production declined, in addition to the higher unexpected unemployment rate which surged for the seven months in June, means a hindering in recovery.

U.S. Dollar Trading (USD) risk aversion helped the USD off lows but for most of the day the world’s reserve currency was under pressure with EUR/USD leading the market higher. Q2 Company results were a little weaker than expected but Weekly Jobless Claims fell to 457k vs. 464k previously. In

US equities fell sharply after opening, but largely recovered and the index is currently down 0.2%. Minor negative news, which may have contributed to the move, included a number of US company earning results missing analyst estimates, a fraud probe into the military insurance sector, and Fed member Bullard opining

The dollar fell versus its counterparts on Thursday. The 4-week moving average of US initial jobless claims decreased to the lowest level since May 8. The S&P 500 declined 4.60 to 1,101.53. The euro rose to $1.31 for the first time since May 4 as euro-area economic sentiment climbed to

The U.S Dollar opened this morning lower across the board based on a Moody's report which stated 'If U.S. government budget projections are realized in coming years, the country's triple A rating would come under scrutiny', and went on to say the United States appears to have 'no plan' to

The greenback fell further overnight against all the major pairs and commodity-related currencies, with little relief seen in the New York session. The initial general shift in sentiment began earlier today in Europe after Moody's scolded the US government about its lack of a plan to curb its deficit. S&P

The euro rose to an 11-week high at above USD1.31 Thursday after improving euro-zone economic data contrasted with festering worries that the U.S. economy is slowing. The dollar traded at its lowest point in three months against a trade-weighted basket of its competitors as investors, worried over the lack of

Yields are relatively static with dealers reluctant to sell bonds towards the top of the recent yield range for lack of evidence that central banks will normalize monetary policy anytime soon. Nevertheless they appear reluctant to dive deeper into the traditional safe haven offered by fixed income on signs of

Tomorrow's US GDP report will show that the economy grew 2.6% quarter-on-quarter annualized aided by consumption growth of 2.6%. But while the numbers are not too shabby relative to the historical trend, given the amount of stimuli and with the economy about the shift down in gears it is certainly

Initial unemployment insurance claims fell -11,000 to 457,000 for the week ending July 24, partially reversing the previous week's 41,000 rise to an upwardly revised 468,000 level (initially reported as 464,000). The drop beat market expectations going into today's report for the level of claims to dip to 460,000. The

The U.S. dollar index reached its lowest point in three months as differences in the pace of recovery between the U.S. and the Eurozone rise to the surface. The latest evidence shows growing confidence within the region. Meanwhile the anecdotal U.S. regional evidence from the Fed's 12 districts continued to

Domestic economic doubts are liable to increase over the next few weeks with particular reservations over the housing sector following recent data. This will represent a growing threat to Sterling as recent optimism is liable to be mis-placed. Global risk trends will also be important for the UK currency and

Most indicators are suggesting that risk appetite rose further this morning. European equities indices have performed well, EUR/USD is pushing higher as is AUD/USD and cable. However, the trends exhibited by the JPY and gold have been less certain. US data is patchy at best and this will likely ensure

Markets are trading in a lethargic manner as participants continue to nervously take on risk-correlated trades. The move toward risk is logical because without the massive sovereign crisis fear hovering over the market like the Sword of Damocles, one needs to consider the fundamentals particularly monetary policy, as the

Optimism is spreading throughout Europe following the release of companies’ earnings that continue to surpass market as it challenge the sovereign debt obstacles, meanwhile, UK mortgage approvals retreated beyond expectations, affected by tight credit conditions and the decline in consumer confidence and demand.

After a dramatic start with the New Zealand interest rate decision, markets settled down with the yen making slight gains on the day. The RBNZ overnight call rate decision got things rolling today with an expected hike of 0.25% to put the rate at a healthy 3.00%, however, the statements

Yesterday, the economic calendar was rather thin. German CPI inflation came out slightly higher than expected, according to the first estimate. Inflation rose to 1.2% Y/Y in July (from 0.9% Y/Y), but this was mainly due to strong base effects coming from very weak food prices last year. Besides seasonal

The dollar declined against the yen in Asia Thursday on speculation that U.S. Treasury yields will fall further due to concerns over a slowdown in the world's biggest economy. Strong demand at a U.S. five-year sovereign note auction overnight suggested that recent weak economic reports from the U.S. have made

The Fed Beige Book, released yesterday, reported growing manufacturing though the rate of growth is slowing in some districts. Durable goods orders declined yet again (-1.0% MoM) providing more evidence of a slowdown in manufacturing. We expect this to continue throughout the second half of the year.

The US data releases continued their weaker trend overnight with durable goods orders falling an 1.0% m/m versus +1.0% expected, although core goods orders (non-defense goods ex-aircraft) posted 0.6% m/m gains in June and May's data revised higher to 4.6% from 2.1%. Nevertheless, markets focused on the headline figure and