My Forex updates

Monday, January 12, 2009

These are some of my daily FX updates I summarized for all my readers.

· After a week which saw traders dumping the Dollar in advance of a dismal employment report, the dollar rallied on Friday after that report showed a better than expected number from the Labor Department. Granted, the number was still miserable at 524,000, however considering the street was expecting a 550,000 number traders found a positive in the Dollar.

· The Euro fell more than 1% on Friday against the dollar on the employment report capping a 2.9%+ loss for the week against the dollar. It will open the next session at 1.3473 where it will try and regain some of its strength in its battle against the greenback. As economic data continues to confirm what everybody already knows – the recession is here to stay for a little bit – the Euro finds itself under more and more pressure. The fact that a dismal US employment report came in less dismal than expected, rallied the dollar against the Euro is more a testament to the poor state of the economies with the EU.

· German industrial production reports showed a higher decline than expected, -3.1% against a forecast of -2.0%. The retail sales report for November showed a more distinct decline of 3% against a forecast of a 0% decline. As one of the largest economies, the German decline is having a serious impact on the Euro as a whole. Traders are now biting their nails over the estimates for the future data reports and revising expectations.

· While the Euro was falling, the British Sterling showed why it is beloved by her countrymen and investors alike. In response to the Bank of England easing up on interest rate reductions, the Pound ended the week with the largest rise against the Dollar in 2 decades and the biggest weekly advance against the Euro. England has their own problems to face, but compared to the struggles going on in the Eurozone and the US, England looks rosy.

· The Canadian Dollar gave back some of its gains early in the week against the US Dollar on reports that the unemployment number was higher than expected and that the housing market had experienced lower than expected sales. Pressure is likely to continue on the CAD this week as investors continue to watch the happenings in the US.


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