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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

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

The euro held near a two-month high against the dollar on Wednesday induced by strong U.S. corporate earnings and easing concerns about euro zone sovereign debt, which also helped push equities higher. This in turn has increased Risk appetite in the financial markets and will impact movement with the risk sensitive currencies such as the Euro, GBP, AUD and NZD.
Intel Corp (INTC) reported results above expectations and gave an upbeat sales outlook, pushing S&P futures higher. Tom Trevorrow Currency Analyst at Torfx Currency brokerage noted that Euro price movement and …Forex Rate – Forex and Exchange rates

Aussie leads the way higher in currency trading

Risk appetite is making a return to the forex market today as the Australian dollar leads risk currencies higher in trading. The Asian session saw an explosion of risk, while things grew a little more subdued during the European session. However, risk appetite remains healthy, in part due to the unexpectedly good news about Australian employment.

GFT’s Boris Schlossberg looks at Australia in FX360:

The increase in labor rolls was the highest since February of 2010 while the unemployment rate reached its lowest level in more than a year and the labor participation rate inched to 65.2% versus 65.1% in May. In a testament to the strength of its economy, Australia now enjoys the lowest unemployment rate amongst the G-20 countries as its resource based economy continues to boom on the back of demand from China.

It is no surprise, then, that the Aussie is finding currency trading support. Also helping risk appetite is likely the news that the IMF has revised its forecast for global growth upward, indicating that another global recession is unlikely in the immediate future.

See AlsoEconomic News and Forex TradingCurrency trading on the forex market

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 [...]

Risk appetite makes an appearance

The euro is seeing gains in forex trading today, as risk appetite makes a small appearance. Yesterday, risk aversion was the story, but it appears that forex traders are ready for a little bit of risk today.

The euro got a little help from higher stocks in Europe. However, stocks have been volatile since the news that U.S. employment numbers are again disappointing. The U.S. stock market has moved higher, but investors are cautious, and this is limiting gains for the euro. Additionally, many are waiting to see how things go with the ECB tender offer.

While the euro is presently higher against the U.S. dollar, it is not known how long this state of affairs can last. If risk aversion once again returns, the euro is unlikely to be able to hold on to any of its gains. The euro is also a little higher against the U.K. pound.

See AlsoEuro in Forex TradingCurrency trading on the forex market

U.S. dollar falls as forex traders look for higher yields

Yesterday, financial markets plummeted on the news that China might begin selling off European debt. However, Beijing has denied those rumors. As a result, the euro is being propped up in forex trading, and a risk rally is well underway.

The U.S. dollar is heading lower as forex traders look for higher returns for their investments. Investors are largely ignoring the news that Quarter 1 GDP had to be revised downward — something that would normally spark some risk aversion.

Not today, though. Investors are so relieved about the news regarding China, and also about the new regarding Spain’s austerity vote, that they are ready for a little risk. As a result, the euro is rallying in forex trading, buoyed up by the positive news.

See AlsoEconomic News and Currency TradingForex trading on the currency market

FXstreet.com (Córdoba) – The Australian dollar keeps consolidating losses against the Yen for the 4th consecutive week. The pair fell further and posted a fresh 10-month low at 76.05 on early American trade. Despite the pair was rejected from those levels toward the 78.00 area recovering over 180 pips, the corrective bounce was limited at that high and now is retreating.

Currently AUD/JPY is trading close to 77.10, 0.73% below Thursday opening price. The pair is shown heading down for both 1 and 4 hour charts as risk aversion is back on the Asian market.

If the Yen consolidates below 77.00, next supports might be found at 76.60 and 76.30; in case the AUD manages to reverse the bias, next resistances could be faced at 78.00, 78.40 and 78.70.

For more information, read our latest forex news.

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