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Currency Pair Overview:

Mixed Forex Trade

The overnight trading hours provided mixed trading patterns in the currency market, as the major pairs tried to push the dollar index lower with only limited success. The exceptions were the pound and the yen, that went in the opposite direction in a trading session that looked lost. The pound had a weak attempt to push higher, but failed to hold as the market trades beneath major resistance levels. Conversely, the yen is moving lower for the first time in a long period after reaching deep into overbought territory.

The euro (Eur/Usd 1.4435) is still trying to develop an upside trend, but so far, the market seems to lack the momentum to hold higher. The ...

Currency Pair Overview:

Dollar Turns Red On Positive Data

After an active European and early U.S. session, the currency market came to a standstill throughout the second part of the U.S. trading hours. In Monday trade, the currency market broke free from the pattern observed throughout December – the dollar was sold on advancing equity markets. The main question is whether the currency market will be able to continue to sell the dollar on positive news, since right now, investors are pricing in higher inflation rates in the U.S. than in the Euro-area, something that can be seen in the spread between the similar maturity German Bunds and U.S. Notes.

Dollar Index Technical View: TheLFB Member Charts ...

Watch Oil, Trade Usd

The Usd is showing some weakness against the major currencies on the first trading session of 2010, with strength coming from the commodity market, and especially crude oil. For the last three weeks oil was one of the strongest markets, even moving higher as the Usd index rallied to approach the 78.00 zone at the end of December 2009.

On the chart below it is noted that the negative Oil/Usd correlation was in place from June 2009 until the middle of December 2009, when oil became bullish after hitting the $68 region and then traded in the same direction than Usd index. That period followed the reaction to the global market absorbing macroeconomic data that showed the U.S. labor markets may ...

Currency Pair Overview:

Rising Equities Help The Majors

Positive equity market trade helped pull the major currencies higher against the dollar in Monday trade. The gains were mainly led by the pound and the aussie, while the euro lagged behind. The gains came after a period in which the currency market looked to want to only buy the U.S. dollar, albeit on very light trading volume levels. The overall lack of momentum on either side f the Usd has raised some doubts about the sustainability of near-term moves.

The euro (Eur/Usd 1.4395) is currently approaching the 1.4400 area, the same place where the market topped and formed two bearish patterns over the last few days of trading. A break above this ...