U.S. dollar in forex trading

The U.S. dollar is softer in forex trading on the currency market today, following remarks Ben Bernanke made yesterday concerning the uncertain state of the U.S. economy.

The news is a blow for U.S. fundamentals, as concerns about a double dip recession start to bubble to the surface. Contrast the uncertain economic data in the U.S. with the improving data seen in the euro zone, and there is a recipe for a lower U.S. dollar forex trading forecast.

Even if the uncertain path of U.S. economic recovery were smoothed, the U.S. dollar would still face challenges. Rising public debt, along with optimism about the euro zone and risk currencies, would encourage forex traders to look for higher returns elsewhere, preferring other currencies to the U.S. dollar.

See AlsoU.S. Dollar in Forex TradingCurrency market opportunities for forex traders

FXstreet.com (Córdoba) ‘

Sterling can’t find strength in forex trading

The U.K. pound moving lower against the U.S. dollar in currency trading on the FX market today. The pound is in retreat, even though the U.S. dollar is lower against the euro in forex trading.

Indeed the Aussie is down against the dollar as well, as some caution remains in forex trading.

Sterling is moving lower off recent highs against the U.S. dollar in forex trading. It will be interesting to see how things proceed from here, and whether or not the sterling can regain the upper hand.

See AlsoU.K. Pound in Currency TradingForex trading on the currency market

Dollar weakness has become the main story with yesterday’

Greenback higher in forex trading

The U.S. dollar is retaining some of its strength in currency trading on the FX market with the news that retail sales were lower in June. Indeed, the news that U.S. consumers aren’t spending a great deal is likely to derail the economy to some degree.

However, things aren’t as bad as they could be. Retail sales were only slightly worse than expected. GFT’s Kathy Lien reports in FX360 on the silver lining:

The number could have been a lot worse considering that most clothing retailers posted a decrease in revenue last month. However the selloff in the dollar was limited because the details was not as ugly as the headline number thanks partially to a late Memorial Day weekend which added approximately 1 percent to spending.

FXstreet.com (Córdoba) ‘

U.S. dollar weakens in currency trading

The trade deficit increased to its widest level since November 2008, and that is having the effect of helping risk appetite on the FX market. Why? Because a widening trade deficit indicates that Americans are getting ready to spend money. And when consumers start spending, the economy picks up. GFT’s Kathy Lien looks at the trade deficit in FX360:

The details of the report showed a pickup in external and internal demand that had nothing to do with commodity prices.

Forex markets are seeing considerable movement already this morning with Sterling currently being sold off against virtually all of its counterparts. Briefly looking at last week the British Pound held a narrow range as the Bank of England refrained from releasing a policy statement following its interest rate decision for July, and the exchange rate may continue to trend sideways over the coming week as investors weigh the prospects for future policy, and interest rate expectations.
Sterling’

It is a bit unusual, but gold prices are currently falling in line with US economic concerns, equity index drops, and dollar losses. Typically, gold is known as the ‘

Since the inception of the financial crisis, the Dollar has been treated as a safe haven currency. Simply, when there was a surge in the level of risk-aversion, the Dollar rose proportionally. When risk aversion gave way to risk appetite, the Dollar fell. It was as simple as that.
Lately, this notion has manifested itself in [...]