USD Dumps Risky Prices of Assets In The Market

Friday, May 21, 2010

On Thursday, there is a mixed trade is sown in USD trading. The Dollar Forex online trading counts lower then the Yen but it seems to be higher in comparison to the commodities of other major currencies. There was a great fall shown in the US equities and commodities along with interest rates and in gold prices because of the high pressure of deflation in US financial market. The Fores traders are worried due to the European bond crisis along with bailout in Greek and also the financial regulations in US. As we know the Dollar is trading at high so all these problems are not the major one among the traders. Yesterday trading of Australian Dollar and Canadian Dollar was weighs down by 2 percent and also there is a fall shown in the Sterling currency where as there is a carry out shown in the Japanese currency Yen.

Today the currency pair EUR/USD boosted out in the forex market because of the rumors in the US market getting support from the ECB. Since from the past year's low the pair drop down to 20 percent after the December high and in mid July it drops to 22 percent low. Now we are experiencing the a demand of additional gain in the Forex market because of the drop down of Dollar in the US market in the past 2008. The federal government only needs approach that will benefit the market is to sell the USD and not to ban their short sales. It is predicted about the US economy that it will become better in the year 2010 suggested by the Conference Board LEI data. The US economy unexpectedly slips down to 0.1 percent in April month after getting revised of 1.3 percent in the month of March.

The Europe economy is facing downside since the past year's fall down of euro. The euro zone countries are going through the tough days of the economy but there is bright sunshine is seen in this week as the currency pair EUR/USD goes high because of the news that the EURO will receive a great help from the ECB government. But, the investors is still in doubt because of the failure of the Stabilization fund that has been announced to provide favor to the EURO currency. Germany prices grew more in April as expected to 0.8 percent. This has been recognized as the third advance as in the march month it was only reaches to 0.7 percent. It is also seen that the UK retail sales incremented for the third time in past three months including April. The retail sale price seasonally noted that was up in April from 0.1 to 0.3 percent.

Now the Asia-Pacific Forex market impact as it is seen that the Japan's economy recovery was not raise this week as expected. GDP of Japan was about 4.9 percent recorded as it is low that forecast for the first quarter of the 2010 year. Since in fourth quarter of the past year the GDP recorded was up to 4.2 percent but it does not do well this year. As if we talk about the Australia's economy rate it was down at 3.6 percent in the month of May than in April as it was recorded to 4.1 percent at that time. This uncertainty is due to the euro zone events that does not provide any benefits to the Europe instead affects the Global economy recovery. This survey is done by the consumer inflationary of Melbourne Institute.

In Asia this week is not at all as good in terms of economy since the EURO is getting benefited from the past two days. This makes the currency pair of EUR/USD to hits high of 1.2671 from the low of 1.2150 points. The all euro currency pairs are showing good results after the upside trend of EURO in the Forex Trading chart. EUR/CHF reaches to 1.4585 by gaining 235 pips and EUR/JPY reaches the high of 114.35 points in a day where as 100 pips was gained by the currency pair EUR/GBP and reaches to a high of 0.8770 points. While Yen goes high against the equities and commodities that are going low along with the Nikkie reaches to 3 percent and touches the one point low in five months. These are all the latest updates about the Forex market of today in technical terms.

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