Forex News

  As full volume returned on Tuesday, the broader markets responded with mixed results. However today gains were seen within the currency and commodity markets as the dollar weakened while markets expect lower growth within the US manufacturing and jobs sectors. The US witnessed bad economic numbers on Tuesday. The Chicago PMI, the S&P/CS composite-20 HPI and the consumer confidence were all disappointing. Today the US will start releasing the jobless numbers with the ADP employment change expected to show a weaker outcome than the previous month. While the ISM manufacturing in May is expected to fall to 57.1 from 60.4, these data managed to position the dollar in a negative trend as concerns over growth in the largest economy in the world started to spread. The dollar index fell today to the lowest level at 74.38. The euro however is finding support not only from the dollar’s weakness, as the European commission along with the ECB and the IMF are close to an...

Optimism dominated global financial markets on Tuesday after news emerged that Greece could soon receive a bailout, as this overshadowed worse than expected economic data from the United States. The S&P/CaseShiller house price index from the United States showed that house prices continued to decline in March, while the Chicago PMI for the month of May eased below estimates, and consumer confidence also fell below estimates. Moreover data from the Euro Zone showed that the flash estimate for CPI inflation eased in May to an annualized rate of 2.7% from 2.8%, while unemployment remained unchanged in April at 9.9%. Stocks in the United States dropped at opening on Tuesday, where the Dow Jones Industrial Average was up by nearly 0.75% to trade around 12,535, while the S&P 500 index rose by nearly 0.60% to trade around 1,339. European stock indexes were also higher before closing on Tuesday, where FTSE 100 was up by nearly 0.80% trading at 5990 and the DAX was higher...

  Broad markets witnessed full volumes returning in force, after the US and UK were in holidays yesterday. Sentiment will be put to test today as markets participants await the release of some important fundamentals this week. The US will released the Chicago PMI as well as the consumer confidence index and the S&P/CS house prices. Lately the manufacturing and housing data proved to be lackluster, thereby today's reports will give investors a proper insight. This week's data will culminate with Friday's non-farm payrolls report that will be of interest for many investors who are looking for a clue on how the Feds will deal with the weak jobs sector combined with the weaker than expected GDP report from last week. Other data released today is Europe's unemployment rate which matched last month's reading, rising by 9.9% in April, as well as the CPI flash estimate from the Euro area which fell to 2.7% in May from 2.8%, and Switzerland's GDP which fell in...

Trading in financial markets was rather calm on Monday amid the absence of U.S. markets, and a lack of economic fundamentals from Europe, which forced thin trading in global financial markets, and accordingly, investors were cautious in trading, as renewed fears from the Euro Zone debt crisis continued to weigh down on confidence levels. Stock markets in the United States were closed on Monday. European stock indexes were mixed before closing on Monday, where CAC 40 was down by nearly 0.05% trading at 3950 and the DAX was higher by nearly 0.25% to trade around 7180, noting U.K. markets were also off on Monday. The U.S. dollar was slightly higher against a basket of major currencies, where the U.S. dollar index was trading at 74.96, compared with the opening level at 74.90. The Euro was little changed against the Dollar, where the EUR/USD pair traded at $1.4287, compared with the opening level at $1.4289, and the British Pound slightly dropped against the...

  The mixture between caution and holidays in both UK and US, will keep the broad markets volatile today. Volumes will be lighter than normal in the currency and commodity markets, and full volumes will return only on Tuesday. There will be a complete lack of data from Europe, the UK and the United States today. Therefore sentiment will be driven by the outlooks surrounding the European debt crisis and the global economic recovery. However the data expected for this week will be critical. On Friday the US will release the important Non Farm payrolls change, while on Wednesday the largest economy in the world will release its ISM Manufacturing report. The recent data from the US jobs sector and the manufacturing sector have proven to be lackluster, therefore market participants will be following the reports with caution and doubts, while Wall Street might witness some losses. Germanywill release the retail sales tomorrow, while Australia will release its first quarter GDP. The AUD  is moving...

Investors were feeling optimistic on Friday after data from the United States showed that personal income and spending continued to rise at a moderate pace in line with expectations, while inflation remained subdued, and consumer confidence rose, which bolstered optimism in European and U.S. markets. The optimism in markets encouraged investors to target higher yielding assets, and accordingly, major currencies rose against the dollar, while commodity prices rose on Friday. Stocks in the United States dropped at opening on Friday, where the Dow Jones Industrial Average was up by nearly 0.55% to trade around 12,470, while the S&P 500 index rose by nearly 0.60% to trade around 1,334. European stock indexes were also higher before closing on Friday, where FTSE 100 was up by nearly 1% trading at 5940 and the DAX was higher by nearly 0.40% to trade around 7142. The U.S. dollar was slightly higher against a basket of major currencies after opening with a downside gap on Friday, where the...

  "The global recovery is gaining strength and is becoming more self-sustained", said the group of right leaders in a statement at a two-day summit that will end today in Deauville, France, fueling confidence and risk appetite. This statement was enough to fuel optimism as a strengthening global economy will diminish debt concerns that increased recession worries lately, especially as woes mounted yesterday with Juncker saying the IMF may not release its 12 billion euros portion of the bailout for Greece next month. Leaders from the U.S., Italy, Japan, Germany, France, UK, Canada and Russia vowed to fight fiscal woes and focused on how to cut debt as "downside risks remain, and internal and external imbalances are still a concern". As the global economy is believed to gain strength, speculations are for demand on commodities to be sustained, especially since the weaker dollar raised the appeal of commodities. Oil is trading today above the $100 level, while gold is above the $1525.00 level. The rise...

Pessimism continued to dominate global financial markets on Thursday, where worse than expected economic data from the United States spread jitters across markets and weakened the U.S. dollar against majors, while the European debt crisis continued to weigh down on confidence levels, although news that China will buy Portuguese bailout bonds boosted the Euro against other majors. The U.S. Commerce Department released on Thursday, the second estimate for Gross Domestic Product for the first quarter of 2011, where the GDP report showed that the U.S. economy expanded at an annualized pace of 1.8% unchanged from the prior estimate, and worse than median estimates of 2.2%. Moreover, jobless claims rose unexpectedly last week, where jobless claims rose to 424,000, compared with the prior revised estimate of 414,000 and also worse than median estimates. Stocks in the United States dropped at opening on Thursday, where the Dow Jones Industrial Average was down by nearly 0.45% to trade around 12,345, while the S&P 500 index dropped...

  Optimism is seen across broad markets today although there were no fundamentals to support it. However commodities gained today, as investors were more confident about the global recovery, dragging the Asian and European stock markets higher. As the global economy seems to be in a good shape, investors seized the opportunity to turn there attention for a while from the deepening credit crisis, Japan’s economic struggle and the disappointing European and US economic data released lately. The rise in commodity prices gave investors an opportunity to catch their breath, however it doesn’t mean caution is off the table. Volatility will continue as Europe is facing some serious problems, as it tries to put someone in charge of the IMF and find solutions for Greece, Portugal and Ireland. There are no major economic data from Europe and UK today, therefore investors will continue focusing on Greece, as its cabinet passed new austerity measures and accelerated the asset-sale plans as the nation tries to avoid...