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Forex Trading MarketA US$700Bn bailout package was finally passed on Friday; however, restoring normalcy to global markets will take time and liquidity remains difficult, keeping bullish pressure on USD and threatening more banks than the five that failed this week in Europe. Fundamental data reflecting a deepening of the global slowdown was mostly ignored. The RBA meets [...]
With international credit markets non-functional and awaiting U.S. government intervention, the forex trading market paused for much of the week as if taking a deep breath. Fundamental announcements that would normally send currencies reeling were ignored, and many major currency pairs traded sharply higher during the early part of the week then moved sideways within [...]
The credit crisis flared and institutions fell like dominoes as multiple central banks injected massive amounts of liquidity into financial markets to no avail. Global stock markets slumped and investors fled to quality. Only the U.S. government’s plan to neutralise toxic assets restored investor confidence, and the resulting rally mainly offset the earlier sell-off. The [...]
Risk aversion resurged this forex trading week, supporting the Japanese yen but undercutting high-yielding currencies as investors unwound carry trades and fled to Treasuries. Losses from the subprime crisis currently stand at USD 511.3bn, 50% amongst U.S. banks and 46% in the Eurozone. The RBA reduced the cash rate target by 25bps to 7.0%, the [...]
A typical summer’s end for the forex trading market, with light volume, high volatility, and illiquidity leading to rangebound conditions and little directional consistency. Although credit concerns remain, financial market turmoil has again receded. Hurricane Gustav entered the Gulf of Mexico and threatens U.S. offshore platforms and refineries, and potentially crude oil prices as well. [...]
Continued declines in prices pushed commodity currencies lower. Conflict between Russia and Georgia increased investor nervousness in Europe, not helped by significantly weaker economic data, prompting exits from European equities and the currency. The Westpac-MI consumer sentiment rose 9.1% to 86.2 for August and consumer inflation expectations fell to 4.9%, mainly on lowering petrol prices, [...]
