Forex News

  While stock markets seem to be tentative awaiting ECB's and BoE's rate decisions later this week, currency markets are gaining since this morning, where the euro reached a one month high on speculations Greece will get a portion of the second aid from EU and the IMF. The European currency recovered the losses suffered on Monday when Jean-Claude Juncker said the single currency was "overvalued" and Greece's aid program was not certain. However, the dollar's downside trend, and the speculations that ECB may signal a rate hike next month gave the euro support. The single currency rose today to the highest of 1.4680, especially after the  European Central Bank President Jean- Claude Trichet encouraged buying Greek bonds for the first time, increasing speculations that Greece may obtain a portion of the second aid next month to avoid a default. Meanwhile, the source of the E. Coli outbreak that killed 22 people and sickened more than 2,000 in Europe remains unknown. Early tests on bean...

The pessimism continued in financial markets on Monday, after the jobs report that was released on Friday showed U.S. employers added only 54,000 jobs in May worse than estimates of 170,000 added jobs, while unemployment rose unexpectedly to 9.1%, as investors are concerned over the outlook of the world’s largest economy due to recent signs of slowing economic activities. Moreover, investors were still concerned over the outlook of the European debt crisis, as despite the announcement made by Greece that it managed to obtain a new aid package, yet investors fear that austerity measures will dampen economic growth. Stocks in the United States dropped at opening on Monday, where the Dow Jones Industrial Average was down by nearly 0.30% to trade around 12,110, while the S&P 500 index dropped to the lowest level this year, where the index fell by nearly 0.50% to trade around 1,293. European stock indexes were mixed before closing on Monday, where FTSE 100 was up by nearly...

  Broad markets start the weak with doubts and fears after receiving a hard punch on Friday since the US labor market appeared to be going down, fueling concerns about growth in the world's largest economy, that stands as an important pillar for global recovery. The dollar index was punished heavily of Friday after the non-farm payrolls showed the economy added 54K jobs in May from 161K expected. What made things worse was the downward revision that was made to the previous reading, while the unemployment rate rose to 9.1%. Such a weak report ignited fears about the possibility of growth slowing in the world's largest economy, and may be taken as a confirmation that "without fiscal and monetary stimulus and heavy government support, the economy is not able to stand on its own two feet", said Hans Goetti, fueling speculation the Feds will continue their quantitative easing policies. As the US economy is no longer as stable as many market participants believed, the...

The Euro had a great week, recovering some of the losses it encountered during May. The upcoming week's highlight is the rate decision with the press conference of Trichet. Here's an outlook for 9 events awaiting us, and an updated technical analysis for EUR/USD. We've seen some risk averse moves in the past week: Bad US figures weakened EUR/USD, such as in the ADP release. But eventually, the hopes for Greece pushed the pair higher, as well as the broad weak picture for the US, seen in Non-Farm Payrolls. Sentix Investor Confidence: Monday, 8:30. This wide survey of 2800 analysts and investors disappointed in the past two months. After steadily rising for a long time, it dropped to 10.9 last month, and is now expected to slide once again below 10 points. PPI: Monday, 9:00. This second tier inflation indicator will be watched towards the rate decision. Producer prices are expected to have risen by 0.8% after 0.7% last month. Retail Sales: Tuesday,...

The market fluctuated heavily since this morning and the final momentum of truth was even worse than anyone had anticipated. The United States reported abysmal jobs figures for May that trailed all expectations and confirmed to investors that the recovery is waning and to enter the ICU very soon! According to the anticipated jobs report to put the doubt and speculation to rest, reality was even worse than that predicted. The U.S. economy added a weak 54,000 jobs in May much worse than the expected 165 thousand and the revised previous of 232 thousand. Unemployment also rallied unexpectedly to 9.1% from 9.0% and opposed the expected drop to 8.9%. Private payrolls rose a sluggish 83 thousand from 251 thousand and trailed the expected 170,000. Meanwhile, the worst headline figure was manufacturing payrolls as factory cut jobs by 5,000 from the 24,000 added the previous month and missed also expectations for 10,000 added jobs. Payrolls were the weakest in eight months and fueled expectations...

  As investors await impatiently the release of the U.S. labor data, caution is dominating financial markets, and tight ranges are seen across the board, especially as Greece's EU and IM mission results are supposed to be announced today. The U.S. is expected to release today a poor non-farm payrolls report, as the economy is expected to have add only 165K jobs in May compared to the previous 244K jobs added. The forecasts for this report have been dropping since Wednesday when the private ADP jobs report missed estimates by far. A weak outcome will not only bring losses to equity markets but also will increase speculations the Feds could continue the quantitative easing policy, and will weaken the outlook of the global economic recovery as the support that has been given so far from the U.S. is dropping, as the recovery slows. Fears from the possibility of a double dip recession are weighing on investors, and consequently commodity markets are presenting some mixed...

  As investors started worrying about the US economy, fears started spreading within the broad markets amid speculations the global economic recovery is losing momentum as the support that has been given so far from the U.S. is dropping. The US economic data played a vital role yesterday in setting a wave of safe heaven trading. The ADP employment change and the ISM manufacturing numbers were both disappointing, fueling believes the U.S. economy is on the verge of a new downturn. These results weakened the outlook for tomorrow's official non-farm payrolls report, which will keep investors in a cautious mode till Friday. In the meantime Europe is not helping investors feel more confident, as Greece's debt crisis persist and the economic data from the region continue to be lackluster. Markets will be awaiting the final decision regarding Greece's aid package by the end of June. Till then sentiment will remain fragile and any developments could trigger a wave either up or down in global...

      As weakness remains detected throughout the U.S. labor market pessimism dominate the global financial markets and mixed results are seen within the equity markets. The Initial Jobless Claims for May 28 inclined above market forecasts higher to 422 thousand from 417 thousand expected, while the continuing claims for May 21 rose gloomily to 3711 thousand from 3675 thousand expected. While the labor markets continues to indicate it is far from recovering, Factory orders also disappointed after falling to -1.2% from -1.0% expected, while the non-farm productivity rose slightly to 1.8% in the first quarter from 1.7% expected. The attention will continue to be on the US since on Friday the economy will release the official jobless numbers, therefore investors will remain in a cautious mode. Stocks in the United States dropped at opening on Wednesday, where the Dow Jones Industrial Average was down by nearly 0.06% to trade around 12,283.48, while the S&P 500 index rose by nearly 0.13% to trade around...

The pressure has started to accumulate on the Single currency again after the release of weaker than expected May EU PMI Manufacturing index which came at 54.6 from 58 in April with strong easing of May Germane PMI Manufacturing index to 57.7 from 62 while the market was waiting for just 58.2 and this pressure has started to gain momentum following the release of US ADP unemployment index which has shown rising by just 38k from 175k in April while the market was waiting for adding 175k and also the weak figure of May US ISM Manufacturing index which eased to 53.5 from 60.4 in April and it was foreseen to get down to just 57.5 to accelerate the greenback back buying back as an investing funding currency pushing the single currency to 1.4306 before rebounding currently trading around 1.435 The single currency could get over 1.4344 reaching 1.4457 earlier this week on easing of the market concerns about the Greek...

Pessimism dominated global financial markets after the opening of the U.S. session, where the ADP employment showed U.S. private employers added only 38,000 jobs in May, well below median estimates of 175,000 added jobs, while the ISM manufacturing index eased in May to 53.5 from 60.4 in April and below expectations of 57.1. The disappointing U.S. data followed other disappointments from Europe, which showed manufacturing activities eased as well in Germany and the Euro Zone, noting investors were feeling optimistic earlier on Wednesday amid news Greece will soon receive a new bailout package. Stocks in the United States dropped at opening on Wednesday, where the Dow Jones Industrial Average was down by nearly 0.85% to trade around 12,460, while the S&P 500 index dropped by nearly 0.90% to trade around 1,333. European stock indexes were also lower before closing on Wednesday, where FTSE 100 was down by nearly 0.60% trading at 5955 and the DAX was lower by nearly 0.50% to trade...