U.K. Pound Still Has Struggles in Forex Trading
Sterling in currency trading
The U.K. pound is still struggling overall in forex trading on the currency market. Earlier today, sterling saw a sell off in currency trading.
However, for now, the U.K. pound appears to be doing better. The better than expected payrolls data out of the U.S. appears to be helping high beta currencies as risk appetite returns.
NFP or Russian Roulette anyone
It’s like attending a bingo session. All eyes will be down waiting for the highly anticipated employment print this morning. Will this week’s ADP report translate into a much weaker jobs number? Will the stubbornly elevated weekly claims push the unemployment rate up two ticks? Will analyst’s consensus of a headline loss of -100k jobs and no growth in the private sector provide us with a non-event as we head into the ‘labor’ weekend? Expect liquidity to be thin as many New Yorkers skip out of town averting the storm ahead of the holiday. It’s another crap-shoot.
Trading In Emerging/Exotic Currencies Increases
The long wait is over! The Bank of International Settlements (BIS) has just released the results from its Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity, conducted in April 2010. The report contains a veritable treasure trove of data, perhaps enough to keep analysts busy until the next report is released in 2013. [Chart below courtesy of WSJ].
NFP herding us to No Mans Land
Better industrial data out of China and the surprising ISM print in the US has every, already confused trader, becoming ‘more lost’ in whatever convictions they have left. At least we have the NFP crap-shoot still to come, that is bound to surprise. We may give up all we have gained in a heart beat this week and we would be none the wiser! Interpreting trading strategies is like a new form of ‘ping-pong’, back and forth with risk appetite. This morning the EUR remains king and has managed to extend its gains in the wake of a well received French and Spanish auctions.
Riskier Currencies Mute Gains in Overnight Trading
Source: ForexYardRiskier Currencies Mute Gains in Overnight Trading
Currencies like the euro and UK pound muted gains made yesterday as investors appear to be waiting on a batch of economic data set to be released later today. Signs that the global economic recovery is speeding up may be reinforced today as the UK, euro zone and US are all forecasted to release significant news.

Category: Fundamental Analysis Tags:
Wednesday links: September snap back
We are now back in the trading range. (Big Picture)
August asset class performance. (Bespoke)

Category: General Market Tags:
Wednesday screencast: forex funds
It seems that for now retail forex is going to be the playground of leveraged traders. The CFTC has proposed rules that continue to allow for retail traders to leverage their funds by 50-1. Retail traders are part of the rising volumes in forex. A report from the BIS shows the global forex volumes continue to surge. The forex market is evolving rapidly, but the big players remain in place. In today’s screencast we wonder if there are any pure plays on forex volume.

Category: General Market Tags:
High Beta Currencies Head Higher in Forex Trading
U.S. dollar down against sterling and euro
The U.S. dollar is down against the sterling and the euro in forex trading today. High beta currencies are moving higher as the global economic outlook gets a little boost from the positive manufacturing data out of China.
Currencies Remain In Corrective Mode
Kathy Lien, director of currency research at GFT Forex, on what to expect from the currency markets.
Forex Trading Volume Officially Hits $4 Trillion
This morning the Bank of International Settlements released its Triennial FX survey which is basically the market’s benchmark for forex volume and turnover. To no one’s surprise, volume has surged over the past 3 years. Between April 2007 and April 2010, global foreign exchange market increased by 20 percent from $3.3 trillion to $4.0 trillion, which is now the golden number for forex volume.
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