Greenback falls on concerns about economy

The U.S. dollar is slipping in forex trading on the currency market today, falling as forex traders consider the implications of economic data.

Indeed, there is an interesting dynamic on the currency market right, with the U.S. dollar lower against high beta currencies, as well as down against the Japanese yen. Forex traders are a bit cautious, and helping the yen firm, but at the same time are concerned about the performance of the U.S. economy as opposed to the European economy.

For now, the U.S. dollar is down across the board, lower against the euro, pound and Aussie, but also struggling against the yen.

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Currency trading with AUD/USD

The Australian dollar is looking to break through the 0.9000 level against the U.S. dollar in forex trading. Earlier today, the Aussie was the only currency able to gain against the greenback (although it has since moved lower).

However, even with minor setbacks in currency trading, AUD/USD shows promise. GFT’s Boris Schlossberg looks, in FX360, at the factors that could help the Aussie in forex trading:

The Aussie is not only benefiting from risk flows but from the speculation that the RBA may decide to raise rates once more in August if the CPI numbers due next week on July 28 th prove to be hotter than expected. The latest Australian employment data handily beat expectations printing at 45.9K versus 15.3K suggesting that growth Down Under remains robust.

Down Under currencies continue to outperform expectations, after weathering the recession reasonably well. It will be interesting to see where things go from here.

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Sterling heads higher in currency trading

The U.K. pound is rallying today in forex trading on the currency market. An improving picture in the British economy is helping give the sterling a boost in currency trading.

Britain saw a lower claimant count than expected, indicating that the jobs situation could be improving. Indeed, employment for the three months leading up through May saw a good pace.

GFT’s Boris Schlossberg reports in FX360 on the possibilities for the sterling in currency trading:

While we believe any expectations of monetary tightening by the BOE are much too premature, today’s positive labor market results should prove constructive to sterling longs and the pair will likely target 1.5300 later in the day if risk appetite remains supportive into the North American session.

The euro is not seeing the same success today, though, as it struggles against the return of some risk aversion to the currency market.

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Slow day helps greenback in currency trading

The U.S. dollar is finding some support in forex trading on the currency market this morning, helped along by the fact that U.S. markets are closed and volume is low. This comes as the U.S. dollar moved a bit lower at the end of last week, due in large part to fundamentals of the U.S. economy.

However, with concerns about a double dip recession surfacing, there has been a bit of a movement toward the U.S. dollar for its stability. Growth is being held back in China, and there are concerns remaining about Europe.

Until the global economy finds some truly solid footing, the U.S. dollar is likely to remain a safe haven investment.

See AlsoU.S. Dollar in Forex TradingTrading on the currency market

Dollar lower as euro gains in forex trading

The U.S. dollar is faltering in currency trading on the FX market today. The euro is gaining today as a little more optimism comes out.

However, there is a possibility that the U.S. dollar could gain the upper hand again soon, since concerns about the economy are starting to creep back. Jobs data is once again disappointing in the U.S.

Currency trading with the euro

The euro is moving higher in forex trading against the U.S. dollar today as some good news helps support the risk trade to some extent. Euro is benefiting from good news out of Germany, with German PPI higher than expected.

The euro is also being supported by stronger gold prices. Gold prices often help support the euro in forex trading against the U.S. dollar. With gold prices making a run at $1,260, it is little surprise that the euro is getting a little help from that.

Also helping the euro are plans that Spain has for more debt auctions. Demand for the last auction was great, and Spain has hopes that it will be able to avoid Greece’s fate. It will be interesting to see how things go, and whether the euro can find solid support.

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European debt issues arise again

The euro is heading lower in forex trading on the currency market as Spain is back in the spotlight. After adopting austerity measures, and inspiring some hope in world markets, Spain is again the subject of concern. There are worries that perhaps Spain (and maybe Portugal) may not be able to handle the debt issues after all.

With worries about the continued debt crisis in Europe, the euro has been unable to sustain gains against the U.S. dollar. BusinessWeek reports on the latest issues related to Spain and the euro in forex trading:

“Focus is back on Spain after a couple of days of news about global growth,” said Arne Lohmann Rasmussen, chief currency analyst at Danske Bank A/S in Copenhagen. “Most of the euro’s recent gains came from short covering, and the move up is petering out,” he said, referring to investors buying back euros to unwind bets that the currency will fall.

With focus back on European debt, it is little surprise that the U.S. dollar is gaining the upper hand, and that things are likely to remain challenging for the euro in forex trading.

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FXstreet.com (Buenos Aires) ‘

The euro fell sharply against the U.S. dollar Friday after Fitch downgraded Spain’s credit rating. Which way will it go next? Boris Schlossberg, director of currency research at GFT Forex, discussed his outlook.

Currency trading with EUR/USD

Earlier in trading, the euro posted gains in forex trading. Risk appetite picked up a bit, sending the euro up to 1.24 against the U.S. dollar on relief about events in Europe.

However, uncertainty is returning to the financial markets, and the euro has slipped back below the 1.24 level, and is trading rangebound for the most part.

EUR/USD is showing the effects of the latest news about personal spending from the U.S. Even though personal income increased, spending did not, indicating that U.S. consumers are interested in shoring up their personal finances, rather than spending money to shore up the economy.

See AlsoEconomic News and Currency TradingForex trading on the currency market