Currency trading on the FX market

The risk rally got a good boost earlier today, with the sterling moving through the 1.56 level in currency trading. On top of that, the euro has gained in forex trading, reaching the 1.30 level.

However, the forex trading forecast question right now is whether or not the risk rally will continue. The latest durable goods news out of the U.S. has been disappointing, and it underscores the glacial speed of economic recovery.

With the pace of economic recovery in doubt, there are concerns that things may not continue as they are, and that the risk rally may slow. We will have to wait and see, though, how forex traders and investors respond to the latest interplay of economic data, policy leader testimony and company earnings reports.

See AlsoLooking for Currency Trading TrendsForex trading forecast

Risk rally on the currency market

The U.K. pound has moved on to the 1.56 level in currency trading on the FX market. As a result of help from the risk rally on the currency market, sterling has hit a 5-month high.

Bank of England officials have appeared before Parliament, and have assumed a more hawkish stance on the British economy. Committee members were mostly upbeat in their testimony, expressing cautious optimism, and forex traders responded by sending the sterling higher in forex trading.

The good news might be overruled, though, with concerns about durable goods orders in the U.S. So far the risk rally remains mostly intact, but concerns about the sluggish economic growth could result in its coming to an end.

See AlsoSterling in Forex TradingCurrency trading on the FX market

U.K. pound rally slows as well

The euro is higher in forex trading against the U.S. dollar, but still has trouble getting through the 1.30 level. Indeed, recent attempts following good economic data in the euro zone have been rebuffed.

GFT’s Boris Schlossberg reports in FX360 on the situation for the euro in forex trading:

The euro however, continues to struggle with the 1.3000 barrier with all attempts to break out higher being capped at 1.3020 for the time being. There was some speculation in the market that M&A flow (a German company buying a US asset ) may have been responsible for the slowdown in price action and perhaps when that order clears, the pair could make another run at the 1.3050 level.

Currency trading with AUD/USD

Risk appetite is putting in an appearance on the currency market today, and AUD/USD is benefitting. Asian stocks ended mixed today, but the Australian market was one of those showing gains. As a result, there is some momentum behind the Aussie in forex trading.

Indeed, matters are progressing reasonably well for the Aussie this morning as forex traders look for high yields, rather than for safe haven investments. With U.S. stock futures pointing to a higher open, and bullishness prevailing in general, it is little surprise that the Australian dollar is doing well.

Also helping to support the Aussie in forex trading is the fact that there is support from China. Even though China’s growth is moderating, there is still plenty of it to help the Australian economy — and the Aussie in forex trading on the currency market.

See AlsoAussie in Forex TradingCurrency market news for forex traders

Euro forex trading forecast

The euro is gaining in currency trading on the FX market as some degree of risk appetite returns to the market. Even though there are some doubts about the global economy, the U.S. dollar is down across the board and forex traders are showing interest in the euro.

Indeed, the euro is getting some relatively solid help for the forex trading forecast, reports Boris Schlossberg in FX360:

The better than forecast PMIs and the largest monthly rise in IFO since German reunification all point to unexpectedly robust performance in Q2.

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.

See AlsoEconomy and Forex TradingForex trading on the currency market

Currency trading with the euro

There is a risk rally going on right now on the currency market, sending the euro higher in forex trading. Most of the euro’s gains today are coming as economic data shows improvement. Sterling is also seeing solid progress in currency trading. Germany, the largest economy in the euro zone, came back with a better than expected Ifo reading, and that is helping.

Also, other signs of economic improvement are helping to boost the euro in forex trading, helping traders forget about sovereign debt problems. GFT’s Boris Schlossberg reports in FX360 on forex traders’ shift in focus:

Over the past several days, the upside economic surprises from the Eurozone have to a large extent allayed investor fears regarding

U.K. pound surges on improved economic data

The sterling is getting a boost in currency trading on the FX market today, with a little help from the latest round of economic data. British GDP is higher than expected, and that is helping the U.K. pound in forex trading.

European markets in general are showing much improvement, thanks to improved data that has investors shifting focus away from public debt. Even in Britain, some of the focus on debt is shifting, and that is helping risk appetite.

However, it is important to remember that there are still concerns about debt in the U.K., as well as in Europe. The GDP number might be better than expected, but Britain needs to show some other signs of economic improvement if the sterling’s gains are to be sustained.

See AlsoSterling in Currency TradingForex trading on the currency market

Sterling, euro in forex trading

The euro and the pound are both gaining in currency trading against the U.S. dollar today. Risk currencies are seeing some positive action, now that euro zone economic data is surprising to the upside. The new focus in Europe and Britain is on positive data, with sovereign debt concerns moving out of focus.

U.S. dollar fundamentals don’t look as good, thanks to Ben Bernanke’s uncertainty about the economic picture in America. However, even with this concern about the future of the U.S. economy, there is optimism with regard to risk. Equities are gaining, and risk currencies rising as forex traders consider positive earnings news and an improved situation in Europe.

Of course, the situation is still volatile, and could change at any moment. But, for now, the U.S. dollar is down across the board and the high beta currencies have the upper hand in forex trading.

See AlsoEconomic Data and the Currency MarketForex trading with world currencies

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