FOREX TRADING

Ten year note futures rebounded after sellers drove price sharply lower following the first sub-400,000 weekly initial claims report since July 2008. Claims for unemployment benefit in the week ending December 25th fell by 34,000 on the previous week to stand at 388,000 in a further sign that the labor

Today’s session was characterized by further USD weakness and at the same time strength by the Swiss Franc. The CHF hit record highs against the GBP, EUR, and USD simultaneously. The USD was also weaker against both the Japanese Yen and the Australian Dollar.

The dollar continued to weaken overnight as it typically does in more favorable economic times. The euro extended its claw-back exercise against the greenback while the Swiss franc maintained its nascent role as anchorman of Europe by furthering its recent record peaks against the world’s major pair of reserve currencies.

China released its manufacturing data for December, and while the index slid slightly to 54.4 from 55.3, it still showed strong activity to end the 4th quarter. There are some signs of slowdown, and watching China’s growth will be key to how the global recovery proceeds in 2011. The inflation

Some observers of the currency market might think that it was detached from reality. The euro has risen more than 1 per cent against the dollar since the London market returned after the Christmas break, at the same time as Italy’s cost of borrowing has risen to a Euro-area high.

With continued downside momentum seen, USDCAD looks to break and hold below the 0.9979/27 levels. We think that zone should initially present a considerable support just as it is doing now. However, if that zone fails, its May 2008 low at 0.9818 will be targeted. Further down, support lies at

On Wednesday Dollar/Yen continued decreasing significantly with nearly 80 pips, matching the negative Interbank sentiment at around -51%. The currency couple depreciated from 82.38 to 81.60 yesterday, closing the day at 81.60. This morning Yen strengthened further, pulling the Dollar further down to 81.28.

Here is a sneak preview of interesting FX ideas for 2011 (extracted and expanded from our soon to be released Yearly Outlook for 2011), in which we combine eight of the ten G-10 currencies based on the themes we suspect have high odds of playing out over the coming 12

The pair is on the verge of reversing its Tuesday losses following its strong Wednesday rally and a continuation in early trading today. However, its decline started from the 1.4281 level remains intact and should eventually resume on ending the correction. On further corrective recovery, EUR will target the 1.3271

As expected, Dollar-Swiss dipped to tuoch a low of 0.9372 and is currently trading below 0.94 figure. In the coming sessions over today and tomorrow, we see good chances of the pair honouring the Support in the 0.9350-80 region followed by a rally towards 0.9500. However, an immediate break below

The recent PBoC interest rate hike last Saturday continued to support Asian currencies, including the JPY. The USD/CNY pair moved to its lowest level on an intraday basis since 1993, after PBoC set the CNY currency at the highest level since the July 2005 revaluation. Some dealers are looking for

There’s much of the same illiquid trading today that has characterized the rest of the week; the dearth of US data yesterday only served to exacerbate the subdued mood in the markets and exaggerated price action on limited flows. The record-breaking USDCHF sell-off has continued to explore fresh downside this

The euro recovered Tuesday’s losses as the dollar weakened against commodities and commodity currencies. Intra-day resistance around 1.3250 was under pressure earlier today, after breaking above former resistance around 1.3180 yesterday, but the pair shows minor signs of weakness at the time of writing. Momentum studies remain bearish on a

The planned short positions from the key resistance range have been realized with achievement of the basic assumed targets. OsMA trend indicator, having marked activity decline of both parties, according to the chosen strategy, gives grounds to assume perspective of range movement without any certainty in relation to choice of

Now trading Dollar at 1.3230 against the EUR, at 1.5500 against the sterling and at 81.50 against the Japanese Yen. With a lack of important economic indicators this time of the year, the remaining traders in the markets will be take a short take profits approach mainly on a technical levels.