Top Forex Stories

  The debt crisis remains in focus for another week. And since today there will be no major global economic data, sentiment will be built around the European stress test results, which failed on Friday to reassure investors and convince the markets about the health of the banking system.    The stress test results highlighted that the region's debt woes are only intensifying, since only 8 out of 90 banks showed the capability to survive another recession, while 16 barely passed. Thus investors dumped the euro and other high yielding assets, heading towards safe heaven including gold, USD, CHF, and JPY. The uncertainties surrounding EU's debt crisis, in addition to the concerns over the outlook for the global growth continue to weigh on markets. Pessimism is dominating the financial markets, as European leaders might fail to reach an agreement to resolve the debt crisis during the summit scheduled later this week. While the U.S. economic data continued to disappoint, another issue is worrying investors....

Earnings seem to be the driving force for optimism among investors, where better than expected earnings from Google Inc and Citigroup Inc fueled cheers in markets, as equity markets in the United States rose by opening on Friday, despite the worse than expected economic fundamentals that were released from the United States. Both Google Inc and Citigroup Inc followed the lead of JPMorgan Chase & Co in announcing better than expected revenues and net income in the second fiscal quarter of 2011, which boosted confidence in stock markets and pushed indexes higher, although indexes trimmed gains after the worse than expected University of Michigan confidence index. On the other hand, data from the United States signaled more weakness, where the consumer price index released on Friday confirmed Thursday’s PPI, which showed that inflation eased in June as energy prices dropped, while the empire manufacturing index showed an ongoing contraction in July. Moreover, the industrial production index rose below expectations, while the University of...

  The rising risk aversion within the broad markets raised demand on lower yielding currencies against higher yielding ones. This brought gains to the USD and losses to other major currencies. And if confidence remains fragile, we should expect the dollar to extend its gains. However talks about the U.S. debt ceiling continue to dominate the landscape, especially after Standard & Poor’s rating agency said there is a one-in-two chance it will cut the U.S. debt rating within three months if the government doesn’t raise the debt ceiling. If the U.S. government doesn’t reach an agreement before August 2nd deadline, we expect the greenback to lose huge momentum against the other major currencies despite the ongoing sovereign debt saga in Europe, the global financial instability and the confusions about the global economic outlook. Europewill release today its much awaited its stress test results. The report will give a picture about the health of the European banking system and will be released after the European...

The US equities Markets came back under pressure after Bernanke's try to redirect the markets which cheered by the existing possibility of supporting the US economy by another quantitive easing plan as he said that can be on circumstances we do not face currently and he has added clearly that the fed is not ready to take such a step currently in his second day of hit semiannual testimony in front of the financial services committee on the house after saying the first day that everything should be on the table. The greenback could be supported after these comments which hurt the risk apatite which has been pressure by another new warning of downgrading the US credit rating maintaining its negative outlook which has changed from stable in last April and this new warning came following Moody's warning of downgrading the US credit rating to contain the markets sentiment highlighting the risk of not raising the $14.29 trillion ceiling of US...

Stock markets in the United States rose at opening on Thursday, as investors were encouraged after JPMorgan Chase & Co reported earnings that topped estimates, while jobless claims fell below expectations, which supported confidence among traders. Moreover, data on inflation showed easing pressures as the PPI fell in June due to falling energy prices, while retail sales for June slightly rose above expectations. Investors shrugged off Moody’s announcement that it put the credit rating outlook for U.S. debt under negative review, as politicians continue to debate over a deal to raise the debt ceiling and lower the deficit, as better than expected earnings from JPMorgan Chase for the second quarter of 2011 boosted banking shares, since investors were prepared for lower revenues and earnings from the banking giant. Moreover, the weekly jobless claims dropped unexpectedly to 405,000 from 427,000 in the previous week, providing optimism over the outlook of the U.S. labor market, meanwhile, PPI fell by 0.4% in June as energy...

Euro dollar is consolidating its recovery, partially enjoying the dollar's weakness across the board. The dollar suffers from the credit rating warning from Moody's as well as the stronger talk about QE3. A big bulk of economic data is expected from the US. It isn't too rosy in Europe, as yields are going once again. Here's a quick update on technicals, fundamentals and what's going on in the markets. EUR/USD Technicals Asian session: A very active session saw the pair storm higher, and bounce off the 1.4282 line. Exactly there. It slid lower since then. Current range 1.4160 to 1.4282. Further levels in both directions: Below  1.4160, 1.4120, 1.4070, 1.3950, 1.3838, 1.3750, 1.37, 1.3570, 1.3440. Above:   1.4220, 1.4282, 1.4375, 1.4450. The historic line of 1.4282 proved to be at its strength once again. 1.4220 is only minor resistance now. 1.4160 and 1.4030 are the main cushions below. Euro/Dollar pressured lower  - click on the graph to enlarge. EUR/USD Fundamentals 9:00 European CPI. Exp. +2.7%. Actual 2.7%. Core CPI. Exp. +1.5%. Actual...

  While the stock markets failed to hold to yesterday's gains, the currency and commodity markets are gaining momentum following the Fed's Chairman Ben Bernanke signaling the Feds could still undertake a third round of quantitative easing (QE3), which triggered fireworks. The U.S. dollar index weakened considerably against most major currencies, especially after Moody's rating agency announced it had put the U.S. debt rating on review for possible downgrade if the current administration will fail to come to an agreement with the Congress. It is clear that the broad markets are dynamic, the uncertainties are abundant, and the confusions about the global economic outlook are persistent, therefore sentiment is fragile and news coming from any direction is creating volatility within the Forex and Commodity markets. The fears triggered by the European debt crisis that might spread throughout the region including Italy and Spain will continue to keep investors uncomfortable. Today the U.S. will release its weekly unemployment claims, the retail sales numbers, and the...

Bernanke sparked a huge wave of optimism in financial markets on Wednesday after he signaled in his semi-annual testimony before the House of Representatives that the Federal Reserve Bank is ready to undertake a third round of quantitative easing (QE3) if economic growth weakens further over the coming period, as Bernanke signaled that the recovery remains moderate so far, while unemployment remains rather elevated, and inflation seems to be easing. Stock markets in the United States and Europe rose on Wednesday, as traders targeted higher yielding assets, which also boosted commodities including crude oil and precious metals, as gold prices hit a new record high amid the dollar’s weakness. Bernanke’s testimony overshadowed mounting fears from the European debt crisis, as traders are concerned that the debt crisis will spread to Italy, the Euro Zone’s third largest economy. Nevertheless, Bernanke’s pledge that the Fed will do everything possible to make sure economic growth picks up pace was still the dominant headline in markets. Stocks...

Euro dollar is heavily pressured to the downside after Moody's downgraded Ireland to junk. The recovery, fueled by speculation of QE3 in the US and by some hope for a magical solution seems like a temporary correction. Are we about to see the next leg downwards? Here's a quick update on technicals, fundamentals and what's going on in the markets. EUR/USD Technicals Asian session: A relatively quiet session saw the pair depressed under the 1.4030 line. Current range 1.3950 to 1.4030. Further levels in both directions: Below  1.3950, 1.3838, 1.3750, 1.37, 1.3570, 1.3440. Above:   1.4030, 1.4070 1.4160, 1.4220, 1.4282, 1.4375 Serious support is only at 1.3750, with the most critical line awaiting at 1.3440. 1.4030 has a weaker role than earlier. 1.4070 is the key for a recovery. Euro/Dollar pressured lower  - click on the graph to enlarge. EUR/USD Fundamentals 6:00 German WPI. Exp. -0.3%. 9:00 European Industrial Production. Exp. +0.5%. 12:30 US Import Prices. Exp. -0.7%. 14:00 US Federal Reserve Chairman Ben Bernanke testifies.  18:00 US Federal Budget Balance. Exp. -68 billion. * All times are GMT. For more...

  China’s economic growth in the second quarter managed to end the sharp selloffs that were triggered in the markets this week. the Chinese economy expanded by an annualized 9.5%, above the median estimates of 9.3%. This spread optimism across the broad markets and the safe heaven dollar lost pace. The better than expected growth numbers from China increased believes that exports will remain strong, compensating for the fears triggered by the European debt crisis that might spread throughout the region including Italy and Spain, and the U.S. pessimistic recovery outlook. However caution will certainly prevail as traders are still concerned over the outlook of the European debt crisis while the overall global economic conditions are still weak. Thereby demand for the low yielding assets including the dollar and the yen may be triggered at any moment. Europe released a negative industrial production today while U.K released a lackluster jobs report for June, which added to the downside pressures on the GBP, yet the relief...