Forex Trading The U.S. Trade Balance Figures

(Richard Lee)- Released on a monthly basis, the U.S. Trade Balance Report is a vital piece of economic data for the foreign exchange markets. Now, it's not on the level with reports like nonfarm payrolls or the consumer price index, but the survey does have relevance. Worldwide trade between countries affects the supply and demand for certain currencies - if a country's goods are in high demand, that same country's currency will also be in high demand. The key is to find and interpret key data points in the report that are relevant to the overall currency trend and apply them when initiating a position. Read more here… 

Forex Daily Outlook – August 17 2011

(ForexCrunch)- PPI in the US and MPC Meeting Minutes in the UK are the main events today.  Here is an outlook on the market-movers awaiting us

In the US, Producer Price Index (PPI), monthly report to measure the finished goods and services prices, is about to rise by%. While in the Core PPI (excluding food
and energy) reduce is expected from 0.3% on July to 0.2% this month.

Later in the US, Crude Oil Inventories, weekly report to value the change crude oil,  further reduce is estimated from -5.2% on the last Inventory to -0.4% this time.

In Canada, Foreign Securities Purchases, the Whole value of local stocks, bonds etc. reduce from 15.40B on July to 10.33B this month is anticipated. Read more here…

Forex - EUR/USD hits 3-week high on ECB bond-buying speculation

(NASDAQ)- The euro jumped to a three-week high against the U.S. dollar on Wednesday, erasing earlier losses, amid speculation the European Central Bank was purchasing Spanish and Italian sovereign debt. 

EUR/USD pulled back from 1.4324 during European afternoon trade, a two-day low to hit 1.4490, the highest since July 27; the pair subsequently consolidated at 1.4478, up 0.49% on the day.

The pair was likely to find support at 1.4250, the low of August 15 and short-term resistance at 1.4535, the high of July 27.

The euro found support as speculation grew that the European Central Bank was buying Italian and Spanish government debt, in an effort to ease pressure on the region's third and fourth largest economies. Read more here…

FOREX-Swiss franc up as SNB fails to stem rally; dollar down

(Reuters)- The Swiss franc climbed on Wednesday and could well test record highs in the coming days, as fresh measures by the Swiss National Bank to slow the pace of the currency's rise disappointed investors bracing for more drastic steps.

The U.S. dollar, meanwhile, dropped across the board, hurt by steep losses versus the franc and selling in the midst of improved risk appetite on Wednesday with most stocks and commodities higher. Investors sought higher-yielding currencies such as the Australian dollar and Norwegian crown. Read more here…

Forex Daily Outlook – August 9 2011

(ForexCrunch)- In the US, Federal Open Market Committee (FOMC) Statement, the main FOMC key tool regarding monetary policy. It forecast the interest rates and other policy measures.

Later in the US, Federal Funds Rate, scheduled 8 times per year to value the Interest rate used by the banks, 0.25% is predicted with no changes from the past times.

More in the US, Prelim Nonfarm Productivity, quarterly report to value the labor proficiency when producing services and goods, without farming industry is about to reduce to -0.6% from 1.8% on the last time. Meanwhile the Prelim Unit Labor Costs that measures the price businesses pay for labor is about to rise from 0.7% on the last time to 2.1%.

In Canada, Housing Starts, monthly indicator to measure new inhabited buildings under construction on the prior month; small reduce from 201K to 194K is predicted this month. Read more here…

Daily Forex Summary on USD, Euro, GBP, JPY, AUD, CAD and NZD

(IBTimes)- The US Dollar is mixed this morning, falling against its "safe-haven" counterparts, but gaining against most of its higher-yielding peers. In the wake of S&P's decision last Friday to downgrade the US's sovereign debt rating, FX volatility has spiked over the past two days, prompting investors to exit riskier positions. While it seems somewhat contradictory, the downgrade of the US's creditworthiness has in fact spurred more demand for US treasuries and other USD-denominated assets. As stocks tumbled into bear market territory, the yield US on the 10-Yr Treasury note fell to the lowest levels since the height of the financial crisis in 2008.

However, a modest resurgence in optimism has led stocks higher this morning ahead of a Fed meeting at which speculation has arisen that the FOMC may announce further stimulus measures. While the recent declines have spooked investors, there is a silver lining to the drop in financial markets. The selloff, which permeated across asset classes, has also weighed heavily on commodity prices, which could help offset a slowing global economy. With oil prices for instance down nearly 30% from their highs earlier this summer, inflation may ease significantly in the second half of the year, removing much of the pressure on global central banks, including the Fed, to begin raising interest rates. In the near term, the USD will remain bound to its recent ranges as investors weigh the consequences of a AA+ credit rating in the US against the dollar's bid as a "safe-haven" asset backed by deep liquidity. Read more here…

Forex focus: the debt dance

(Telegraph.co.uk)- On either side of the Atlantic currencies are lurching around trying to avoid another disaster. Both the Chinese and the credit rating agency Standard & Poor’s have downgraded America’s status from a triple-A nation to AA+ following the politicians’ inept handling of its ballooning debt obligations.

And the European Central Bank (ECB) had to step in on Monday to buy Italian and Spanish bonds to prevent them reaching the same dizzying heights as Greece’s government borrowing levels just before it needed a bail-out.

It’s one thing for the smaller economies like Greece, Portugal and Ireland to be bailed out, but major economies like Spain and Italy have been dubbed too big to fail and too big to bail. Read more here…