COMMENTARY

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  Thanksgiving Volatility May Offer Opportunity
  Written by Kathy Lien
  Last updated 11/20/2009 4:42:07 PM ET
  The dollar is stronger across the board, but the effects of a late day stock market managed to erode some of the greenback’s standing. Of the major pairs, the pound was hit hardest by today’s selling pressure, and lost 0.95%. USD/JPY, on the other hand, was not as welcome to accepting dollar strength, and kept gains minimal at 0.07%. Global stock markets took another hit today on signs that the ECB is taking their first steps towards an exit. Even though we are heading into Thanksgivings week, it does not necessarily mean that markets will come to a grinding halt. A lot is on the way in terms of trading opportunity and a long list of critical data.
  0 comments
• 5 Tips to Improve Your Forex Trading
  Written by Kathy Lien
  Last updated 11/20/2009 9:07:30 AM ET
  On this quiet trading day devoid of any market moving U.S. data, we take this opportunity to share some tips that we have to help you improve your forex trading. Regardless of whether you are learning to trade for the very first time or seasoned, we hope that you find these tips useful. Feel free to add your own tips in our comment section!
  5 comments
• Update: NZD/CAD Approaching Short Opportunity at 0.7942
  Written by Bradley Gareiss
  Last updated 11/19/2009 7:54:25 PM ET
  A bearish Gartley pattern is forming on the NZD/CAD.
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• Update: Short-Term GBP/JPY Buy In Progress...
  Written by Roger Stojsic
  Last updated 11/19/2009 2:13:31 PM ET
  The bullish butterfly pattern highlighted in last week's "Solid Short-Term GBP-JPY Buy Emerging..." technical feature has come to fruition triggering our current long position from 147.80...
  1 comment
• December Forex Trading Patterns
  Written by Kathy Lien
  Last updated 11/19/2009 11:17:56 AM ET
  As we are heading into the last month of the year, we take this opportunity to look a one of our favorite topics in forex, seasonality. We have long discussed how, during certain months, currency pairs show a consistent bias to rise or fall and December is clearly no different. Along with the chaos of the end of the year has come a very stable and significant pattern that may hint at further dollar weakness.
  5 comments
• U.S. Dollar Holds Onto Gains Despite Data
  Written by Kathy Lien
  Last updated 11/19/2009 10:28:53 AM ET
  Risk aversion is the theme of the day with stocks down more than 100 points and the dollar up against nearly all of the major currencies. It has been a busy morning with a flurry of economic data and Treasury Secretary Geithner speaking on the hill. Jobless claims were virtually unchanged at 505k but continuing claims rose to 5.611M.
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• Can Euro Maintain Momentum?
  Written by Boris Schlossberg
  Last updated 11/19/2009 2:34:51 AM ET
  Our final dispatch from Dubai as we head home tomorrow and will publish next on Monday from New York, Risk aversion came back in Asian trade today with Topix sliding more than 2% on the Mitsubishi UFJ IPO pushing shares lower. After rebounding to 89.50 during the US session yesterday USD/JPY continues to hover near the 89.00 figure as weaker equities press the pair lower. We continue to believe that yen could strengthen further aided by both risk aversion flows and the nagging issue of yuan revaluation . Unless the dollar strengthens materially, providing some relief for export led Asian economies and the Europeans we think yuan reval story will persist and the Chinese will have to respond to world pressure even if the move may be largely ceremonial rather than economic.
  3 comments
• U.S. Dollar: More Signs of Sobering Recovery
  Written by Kathy Lien
  Last updated 11/18/2009 4:23:07 PM ET
  Just like the economic data released from the U.S. data this morning, the performance of the U.S. dollar has been mixed. The dollar traded higher against the British pound, Japanese Yen and most of the commodity currencies but lost value against the euro and Swiss franc. At one point in the morning, it appeared that the EUR/USD wanted to make another run for the 1.50 level but it fell 10 pips short. U.S. stocks ended the trading session in negative territory while gold prices hit record highs intraday.
  2 comments
• U.S. Dollar Shrugs Off CPI and Housing Starts
  Written by Kathy Lien
  Last updated 11/18/2009 8:54:27 AM ET
  This morning's mixed U.S. economic reports had a limited impact on the U.S. dollar. Based upon the consumer price index, inflationary pressures increased in October.
  6 comments
• Pound Rock and Rolls as BoE Splits 3 Ways
  Written by Kathy Lien
  Last updated 11/18/2009 8:25:27 AM ET
  The most anticipated event today was the minutes from this month's Bank of England meeting and boy did they deliver. Taking a look at the pre release levels in the GBP/USD, the currency pair appears to be trading not far from those levels.
  1 comment
• Dollar Rally - One Day Wonder?
  Written by Boris Schlossberg
  Last updated 11/18/2009 3:50:37 AM ET
  Apologies for the early print, but we are in Dubai all week and meeting commitments prevent us from covering the European open. In Asian trade risk FX regained some ground against the buck with EUR/USD recapturing the 1.4900 handle while Aussie climbed above the .9300 figure as jawboning by both Bernanke and Trichet appears to have had only temporary impact on the currency market.
  2 comments
• Review: Trade Invalidation Management
  Written by Bradley Gareiss
  Last updated 11/17/2009 7:37:51 PM ET
  We will discuss the easiest way to keep track of invalidated trades.
  7 comments
• How Much Impact Can The Fed Have On The Dollar?
  Written by Kathy Lien
  Last updated 11/17/2009 5:24:47 PM ET
  Over the past 24 hours, the U.S. dollar gained strength against all of the major currencies. However the rally, particularly against the British pound and Canadian dollar has been far from impressive. The GBP/USD is virtually unchanged while other currencies such as the euro and Australian dollars are off their lows. There is no question that central bank officials are trying to talk up the dollar and to some degree it is working because investors are starting to think that the dollar is not a one way trade. Yet just because the central banks want to see a stronger dollar does not mean that they will do anything to engineer one, particularly the Fed. Incoming economic data indicates that the pace of recovery is slowing which validates Bernanke’s concern that future setbacks are possible. Unless the recovery gains traction, the Fed may not want to take steps to derail it.
  2 comments
• U.S. Dollar: Unfazed by Mixed Data
  Written by Kathy Lien
  Last updated 11/17/2009 9:34:35 AM ET
  A flurry of U.S. economic data this morning has failed to have a material impact on the U.S. dollar. The greenback strengthened throughout the European trading session and accelerated its gains after ECB President Trichet applauded Ben Bernanke's comments on the U.S. dollar. The latest data from U.S. indicates that the weak dollar has actually helped to boost foreign purchases of U.S. assets.
  11 comments
• ECB Trichet Joins the Chorus - Capping EUR/USD Gains
  Written by Kathy Lien
  Last updated 11/17/2009 8:59:15 AM ET
  ECB President threw a wrench into the EUR/USD rally when he joined the chorus of central bankers supporting a strong dollar. Unlike the U.S. who really needs a weaker dollar, the Eurozone will really benefit from a stronger one.
  7 comments