FOREX TRADING

Well, what a year it has been. If you have been out of the markets for past 12 months then you may think nothing had happened when you look at EURUSD, which is set to closer the year a mere 3% lower than where it opened. Likewise, the S&P 500

The EUR/USD slid below the 1.2870 2011 low and established a new 2011 low at 1.2857 before a corrective rally followed. As we wind down the trading year on the 12/30 US session, the market appears to continue this corrective rally. It is so far held below 1.2968, 50% retracement

Global asset markets are quiet on this last trading day before New Year. European stocks are 0.3 percent higher, EURUSD is down 0.2 percent, gold spot is up 1.6 percent, WTI crude is unchanged and Spanish & Italian 10-year bond yields are down eight and two basis points respectively. US

Cable is continuing to trade above 1.5400 and is inching up higher slowly. This has eased the downside pressure a bit. But we need to see whether it can sustain higher in the US session as well. As mentioned in our Morning comments, we will stay out of the market

EURJPY-With the cross taking its support at its Dec 15’2011 low at 101.02 and another key support located at the 100.75 level, representing its Oct’2011 low, risk of continued bearishness is likely. In such a case, the 100.00/99.87 levels, its psycho level/July’2010 lows will be targeted with a violation of

2011 was not a kind year for mostly everyone involved in the currency markets. Traders generally depend on fundamental data to dictate directions in the forex market, but the uncertainty in Europe and the floundering global economic recovery were a recipe for daily bouts of volatility that had not been

On Thursday Dollar/Yen decreased insignificantly with 40 pips. The currency couple depreciated from 77.95 to 77.57 yesterday, not matching the positive Interbank sentiment at above +8%, closing the day at 77.62. This morning the Dollar weakened slightly further against the Yen, reaching 77.29. On the 1 hour chart quotes are

It seems only fitting that to kick off the last trading day of the year FX markets were just drifting. EURUSD traded down from 1.2964 to 1.2928 with little conviction in thin volume. Gold which took a pounding all week, crawled off the $1522.00 floor to $1563.57. Asian regional indices

Today’s calendar is not particularly full but is the last trading day in an eventful 2011. The latter combined with very thin markets may result in some movements, but the trading session in Asia (night/morning) has so far been very calm focus on fixings at 2.15 p.m. and 5.00

On Thursday Pound/Dollar continued decreasing with 115 pips. The Cable depreciated from 1.5476 to 1.5360 yesterday, in line with the negative Interbank sentiment at almost -1%, closing the day at 1.5413. Today the British Pound is trading hesitantly, but within yesterday’s range for the time being. On the 1 hour

EURUSD hit fresh lows of 1.2858 yesterday, after an Italian auction of long-term debt did not go nearly as well as the shorter term auctions the day before. The yield on 10-year bonds was just a whisker lower than the unsustainable 7% level (at 6.979%), and in spite of the

The euro produced mixed results against its major counterparts as the last Italian bond auction for the year recorded lower yields but did not reach the expected demand. The yields fell compared to November’s auction, but only EUR 7 billion was bought with EUR 8.5 billion expected. Versus the US

With many traders looking to get a jump on the long New Year holiday weekend, currency markets in Asia were not unexpectedly quiet. With thinned liquidity, end of year flows helped jam the Aussie dollar higher early on in the session. The moves helped to send the AUD/USD through 1.0170,

To mis-quote Churchill, the dollar in 2012 is likely to be the worst major currency, except for all the others. Reserve managers and funds will still want to diversify away from the US currency in the medium term, but a lack of attractive alternatives and the sheer necessity in holding

Another day spent in tight ranges during the Asian session after risk currencies rebounded overnight following an extended early sell-off.

The final data releases for the year gave us the first indications of manufacturing activity for the Asia region in December. Following yesterday’s string of disappointments, Japan at least had something