Blogs - Forex Hound Blog RSS Feed

Dollar trading stronger against most major currencies.

Forex Hound Analysis Team — Mon, 05 Jan 2009 05:57:00 EST

The Dollar is trading stronger against most major currencies. News that the U.S. government may provide stimulus to the economy in the form of tax cuts and spending is leading to speculation that the U.S. economy will be the first to pull out of the recession.

New Fed Strategy Should Weaken the U.S. Dollar

Forex Hound Analysis Team — Tue, 16 Dec 2008 05:20:00 EST

The U.S. Dollar is trading weaker ahead of the FOMC meeting today. Traders know the Fed has to figure out a way to get more cash into circulation.

Chart Supports Bullishness in the Euro

Forex Hound Analysis Team — Mon, 15 Dec 2008 04:36:00 EST

The strong support base in the Euro is helping to support the current rally. It is often said that “the height of the market is determined the length of the base.” Taking this into mind then the base formed by the three bottoms at 1.2329, 1.2388 and 1.2549 starting on October 28 support the start of a powerful intermediate term rally.

Markets Reflect Deflationary Concerns

Forex Hound Analysis Team — Fri, 12 Dec 2008 05:19:00 EST

The weakness in the U.S. Dollar on Thursday, sent a signal to the equity and commodity markets that it should not be considered a given that the U.S. Dollar is a safe haven investment.

Daily Trend Turns Up in Euro

Forex Hound Analysis Team — Thu, 11 Dec 2008 05:44:00 EST

The Euro surged overnight following the release of a statement by the European Central Bank calling for a slowdown in future interest rate cuts. ECB members are split as to whether or not it should maintain its aggressive rate cutting. ECB President Trichet also voiced his concern about low interest rates. He is not comfortable with interest rates at current levels because of the fear of inflation.

Euro Beginning to Look More Attractive

Forex Hound Analysis Team — Fri, 05 Dec 2008 06:43:00 EST

The recent slew of negative U.S. economic news has surprisingly been ignored by the market. Thursday’s positive move by the ECB may be the start of a shift back to the Euro especially if the U.S. Non-Farm Payroll number on Friday turns out worse than expected. For months traders have been favoring the Dollar because of the Fed’s proactive moves towards solving the U.S. recession, this time it looks like the ECB has gained the upper-hand.

Bernanke Comment Fuels Shift in Sentiment

Forex Hound Analysis Team — Tue, 02 Dec 2008 05:50:00 EST

Yesterday Fed Chairman Bernanke hinted that the Fed may be interested in buying Treasury debt.

Euro Traders Prepare for Interest Rate Cut

Forex Hound Analysis Team — Mon, 01 Dec 2008 06:21:00 EST

The European Central Bank meets on December 4 to discuss its next move regarding interest rates. Traders are anticipating a cut, but recent comments by ECB officials are making it difficult to decipher how aggressive the cut will be. Last week ECB President Trichet hinted that growth will be substantially lower in 2009.

Fundamentals and Technicals Support Rally for British Pounds

Forex Hound Analysis Team — Fri, 28 Nov 2008 06:35:00 EST

This week the main trend in the British Pounds turned up for the first time since August 5. This is a sign that investor confidence is returning to the currency. On the futures side, the Commodity Futures Trading Commission Commitment of Trades Report is also showing signs that large trader interest is returning to the long side of this market.

U.S. Housing Report Could Accelerate Gains in the Euro

Forex Hound Analysis Team — Mon, 24 Nov 2008 06:40:00 EST

Despite news that the German Ifo Business Confidence Index fell to a 16-year low, the Euro remained strong versus the U.S. Dollar in overnight trading. This move may accelerate to the upside if U.S.

Swiss National Bank Surprises Market with Rate Cut

Forex Hound Analysis Team — Thu, 20 Nov 2008 12:29:00 EST

Early this morning the Swiss National Bank cut its key interest rate this morning. The recession in the Euro Zone has weakened the Swiss economy to the point where the policymakers felt it was necessary to lower rates in an effort to stimulate the economy.

Pressure Mounting for Action by the Bank of Japan

Forex Hound Analysis Team — Wed, 19 Nov 2008 03:40:00 EST

Japanese Yen traders fear an intervention by the Bank of Japan if the Yen continues to appreciate. The problem is no one knows at which level the Bank of Japan will act. Traders cite the recent forecasts by Japanese automakers of profit declines in 2009 as the main reason for the need for an intervention at this time.

Bank of Japan Could Be a Factor if Yen Continues to Appreciate

Forex Hound Analysis Team — Tue, 18 Nov 2008 04:49:00 EST

The Japanese Yen is trading higher this morning once again because of the weakness in the global equity markets. Traders are buying the Yen despite the fact that Japan’s economy has officially entered into a recession. Traders are shunning risk at this time and favoring the safety of the Yen.

Lack of Direction from G-20 Meeting Triggers Rally in British Pound

Forex Hound Analysis Team — Mon, 17 Nov 2008 05:40:00 EST

The weekend ended in disappointment as the G-20 meeting yielded little concrete solutions to the financial crisis that is gripping the world. The G-20 nations did issue a statement basically blaming investors who “sought higher yields without an adequate appreciation of the risks.” A couple of directives from the meeting were a call for financial institutions to keep more capital and an increase in surveillance of these firms. As far as the global recession was concerned, the G-20 basically left it up to the individual central banks to solve the problems.

Canadian Dollar Forming Bottom

Forex Hound Analysis Team — Fri, 14 Nov 2008 05:32:00 EST

If you have not noticed, most commodity markets have, for the most part, been holding the lows established over the last two to four weeks. Soybeans are holding the low put in on October 16, Gold and Wheat are holding their lows from October 24, and Coffee is holding its low from October 27.

Lower Demand from China Signals Wider, Deeper Global Recession.

Forex Hound Analysis Team — Wed, 12 Nov 2008 10:34:00 EST

Look for a lower trade today as the EUR USD should continue to feel selling pressure as traders are shunning the higher yielding, riskier Euro. Expectations that the recession affecting the Euro Zone will continue to deepen is driving traders to the safety of the Dollar.

Euro Struggles Against Dollar Despite U.S. Economic Weakness

Forex Hound Analysis Team — Tue, 11 Nov 2008 06:15:00 EST

The Euro is trading lower against the U.S. Dollar this morning despite fears that the U.S. recession will be longer and deeper than originally forecast.

GBPUSD Channel

Forex Hound Analysis Team — Wed, 05 Nov 2008 22:17:00 EST

Cable failed to complete the bullish flag we spoted a few days ago and has started to move lower touching the 1.5600, on the larger timeframe we can see the pair trading inside a bearish channel and with every support breach came a new low. At the moment GBPUSD was rejected 3 times by an intermediate trendline connecting lower swing highs and that comes to support the move south, those who sold rallies can continue to do so, the rest of us who didn't perhaps a change of bias is in order.

Forex Strategies For Current High Volatile Markets

Abe Cofnas (LEARN4x.Com L.L.C) — Mon, 03 Nov 2008 06:09:00 EST

Forex traders must feel a bit like the frog in the pond. Suddenly the weather changes and they are stuck. Well the forex weather has changed to very stormy. A consequence of this shift is its impact on forex trading strategies and tactics.

EURUSD Oct31st Review

Forex Hound Analysis Team — Thu, 30 Oct 2008 22:43:00 EST

The pair has retraced nicely after the 1.2330-1.3300 move, it reached the 50%Fibonacci line yesterday and after a quick bounce it pushed lower closing in on the 61.8 Fib where we can expect at least the same; so, we're looking for a bounce around the 1.2700 area, a bounce that could very well turn into a bigger move towards the recent highs. Below 1.2700 we have the 1.2580/1.2620 support zone, with former swing highs and lows that will mmost likely be respected by price action.