Posts Tagged: trading sentiment

The two most important currencies in the world, the Euro and the US Dollar are now faced with quite a difficult period which causes them to fall against most of their major counterparts. The Euro continues to be influenced by the European sovereign debt crisis and its effects, while the US Dollar is falling on the growth of the risk appetite.

The Euro fell as much as hitting the 1.3400 level against the US Dollar, rally which the currency did not manage to maintain, despite the optimism related to the results of the Italian bond auction. This has caused the EUR/USD to fall behind the 1.3400 level, which means that the pair is likely to end the week at a lower level than the one it had started with. This means that all the gains that the Euro has managed to score during the very brief period of optimism have actually been rapidly erased. The optimism was the Read more »

Despite the decision taken during the Group of Twenty summit concerning the solutions to the European sovereign debt crisis, it seems that the situation in Europe is not yet solved as the fundamental data indicates the fact that the European Union’s economy has worsened. This piece of news has increased the concerns relating to which the Eurozone’s problems are too difficult to be solved in the near future.

It seems that even the German economy, one of the Europe’s most solid economies, has been suffering. The retail sales in Germany have increased by only 0.4 percent during September, after the 2.7 percent fall registered in August. Economists were expecting a growth by 1.1 percent, so this is quite a disappointing figure. The problems in Italy seem to have gotten worse, increasing investor’s concerns. The unemployment rate in Italy has grown to 8.3 percent in September from the 8.0 percent registered in August. According to Eurostat, the unemployment Read more »

Even though the situation in Europe seems to have found a temporary solution, it seems like traders continue to be concerned regarding the ways in which the global financial crisis is going to evolve. This has caused an increase in demand for safe-haven currencies, which has immediately had a positive effect upon the US Dollar. The Japanese Yen would have also benefited on this trading sentiment if it weren’t for the Bank of Japan’s intervention.

The US Dollar started to grow today against most of its major counterparts based on the concerns related to the further evolution of the global financial crisis. This has all been caused by the fact that traders started to get concerned relating to the fact that the solution proposed by the European leaders last week are under no circumstances long-term solutions for the crisis. Even though the concerns about Greece started to fade a little, traders are now concerned with the evolution of Read more »

The results of the Group of Twenty summit have had an influence on today’s trading as well. The meeting did not bring so much news related to the solutions the European leaders are going to take in order to solve the sovereign debt problem because Angela Merkel and Nicolas Sarkozy have already said that the final decisions are going to be made public on the 3rd of November. This is also probably due to the fact that the European officials no longer want to influence the trading sentiment more than it is necessary.

This decision has had a powerful impact upon the market as traders suddenly turned to risk aversion, causing safe-haven currencies to grow some more and riskier currencies to lose ground. One of the currencies that took advantage of this risk aversion is the Japanese Yen which managed to score gains against most of its major counterparts today. The Japanese Yen especially grew against the US Read more »

The new economic data which has been released yesterday as had a powerful impact on the Great Britain Pound. The decline of the employment data has caused the British currency to fall against its major counterparts. The results of a measuring of the consumer’s sentiment index related to the confidence of British persons related to their perspectives to get hired have decreased by one point, reaching the level of 67. This lack of confidence has affected the currency, making it fall on the trading market. As a matter of fact, one of the greatest Britain’s problems at the moment is related to the disappointing economic data. The fact that the macroeconomic reports have indicated figures which are worse and worse from month to month has started to have a very powerful impact on the Great Britain Pound, causing the currency to fall and the rumors related to the possibility of the Britain’s economy of going into recession to Read more »

Even though the last few days have been quite loose on the risk appetite, it seems that the sentiment reappeared today, causing the Euro to grow based on the fact that investors are looking for better yields. The good news all the Forex traders were expecting started to show up, starting to change things around and reinforcing the confidence of the traders in the Euro.

At the moment, the Euro finds support especially in the news according to which the German parliament has voted the Euro bailout fund. At the moment, a little support from the EFSF would be the solution which might just put an end to the sovereign debt crisis and reestablish a safe economic situation in Europe. Based on this news, the Euro managed to grow even more against the US Dollar, despite the fact that there continue to be concerns on whether or not the sovereign debt crisis is to be resolved for Read more »

The European zone is confronted with more and more bad news each day. Some of the problems associated with the making progress of the sovereign debt crisis and the bailouts of countries such as Greece are related to Angela Merkel, the German Chancellor, who has seen divisions over the problem of the bailouts in the Eurozone in the coalition government. There are some German politicians who are disgusted at the thought of sustaining other European countries in their debt crisis. This comes as a consequence of the fact that Germany already provides huge quantities of money for the indebted nations and in order to sustain the Euro on the trading market. This is rather normal as the German economy is the most powerful and the most solvent one in the Eurozone. As a matter of fact, at the moment, Angela Merkel is faced with interior problems as there are parties which sustain the Euro and others which are Read more »

As the European leaders have finally managed to find a solution for the situation in Greece, it seems that the European currency finally managed to recover and start scoring gains again against its most important counterparts. The European Union leaders met in order to discuss once more the situation of Greece and it seems that they have finally succeeded in finding a solution. They have decided upon increasing the size of the rescue fund and upon accepting a temporary default level set upon Greece as this is the only solution in order to prevent the debt crisis of expanding towards other countries in the region.

The most difficult part of this process has been that of accepting the label “default” for Greece, but the European Union’s leaders have finally agreed upon the fact that a short period in which this label is going to be used for one of the European Union’s countries is better than allowing Read more »

Despite the progresses made at the end of the previous week, the Euro started again to lose territory against its major counterparts in the overnight trade as the situation concerning Greece faced new impasses as the finance ministers of the European Union did not manage to reach an agreement concerning the release of the fifth tranche of money which would keep Greece from defaulting on its debts.

This impasse couldn’t have been predicted by the market as it looked as if the discussions were making progress last week as the Germany’s finance minister Wolfgang Schaeuble’s deputy, Joerg Asmussen, announce the fact that he is looking forward to the close moment when the European finance ministers would “find an agreement that the IMF and the Europeans can pay out the next tranche for Greece”. This declaration has been made on Sunday, the 19th of June, in Luxemburg. However, this arrangement did not work as the core European Union Read more »

Despite the very difficult situation the Euro has been in lately, due to the sovereign debt issues, the 17-nation currency managed to finish the week in a good position, gaining back some of the territory lost at the beginning of the week. Even though the situation concerning Greece continues to be of pressure for the European Union, it seems like traders have started to relax upon concerns and to turn back to the Euro. This has also happened due to the fact that there are new hopes for Greece emerged and that this fact actually helped the Euro to erase some of the recent losses.

Even though the beginning of the week has been rather weak for the Euro, based on the fact that there have been contradictory discussions between the European Union’s leaders concerning the measures which they are supposed to take in order to solve the Greek situation, especially as the Greek government seemed to Read more »