FOREX TRADING

Increasing Arguments To Cut USD Shorts

News and Events:

The USD remains buoyant as the tide of news and data seems to be shifting favour away from high beta currencies into year end. The last few weeks have seen a melee of separate factors jolt markets out of their habitual USD-selling mindset. Dubai’s debt worries initially sent investors fleeing for the reassurance of the USD safe-haven, subsequent Greece downgrades weighed heavy on the EUR, and then the massive shock improvements in US payrolls and retail sales led to a reassessment of whether the USD was a still a reliable candidate for funding carry trades. (more…)

Yen Falls And The EUR Rises Against The US Dollar As Dubai Declares Will Get Fun

Following Abu Shabi’s pledge to bail out, concerns that the biggest banks in Europe will suffer writedowns on loans in the gulf state have been relieved. Uncertainties on Dubai debt problems have been removed once the announcement has been made, as well as worries over the losses suffered by financial institutions across Europe and the UK – opinion the analysts in the market.

Some of the funds will be paid to ‘trade creditors as well as meet interest expenses and company working capital’ – statement that urged the Euro to gain against the US Dollar. After a strong decline to $1.4586- its weakest level since the 5th of October, the Euro rose to a level of $1.4678 as of 6:45 a.m. in London.

(more…)