Thursday, October 23, 2008

Dollar climbs two-year peaks, risk stays in focus

Forex dollar scales two-year peak versus basket of currencies, Euro slumps to two-year low against dollar.

The dollar climbed to a fresh two-year high versus the euro and a basket of currencies in choppy trade on Thursday as investors nervous of a severe global recession kept their faith in reserve currencies.

A brief rise in stocks on Wall Street and aggressive dollar selling by the Brazilian central bank helped to lend some stability to emerging market currencies, limiting the dollar's upward momentum, analysts said.

Emerging market currencies have borne the brunt of the global financial crisis as U.S.-based investors offloaded assets in developing markets and repatriated the money.

Analysts were skeptical that the calm would be sustainable, with investors remaining wary of a sharp global economic downturn and a poor profit outlook for corporations.

"The Brazilian central bank intervened materially and bought reals against the dollar ... that seems to have calmed the price action, not only in the G10, but global currencies as well,

Thursday, October 16, 2008

Dollar gains vs yen, falls vs euro as risk edges up

Euro, dollar rise vs yen as modest risk-taking resumes

U.S. jobless claims fall, easing some economic worries

Global stocks tumble but Wall St points at higher open (Updates prices, adds comment, detail, byline)

New York, Oct 16 (Reuters) - The dollar rose against the yen on Thursday but slipped against the euro as investors hoped government moves to inject cash into troubled banks would get credit flowing and help stabilize world financial markets.

Trading was choppy, though, as worries persisted that fallout from the credit crisis that began more than a year ago will eventually plunge the world economy into recession.

Asian stock markets plunged on Thursday, led by a 11.5 percent decline in Japan's Nikkei average .N225, taking their cue from U.S. stocks, which on Wednesday posted their biggest one-day slide since October 1987.

That prompted investors to seek shelter in dollar assets, but that move faded a bit on Thursday as data showed the number of Americans filing for first-time jobless benefits fell last week and U.S. stocks opened on a steady note.

Thursday, October 2, 2008

USDCHF-Forex Trading Signals Buy the USDCHF on SSI-based Forecasts

10-02-08-ssi4

USDCHF – Our contrarian positioning indicator accurately forecast that the US Dollar would rally against the Swiss franc through recent trade, and our SSI-based forex trading signals on DailyFX+ actually bought the USDCHF at 1.0887, 1.1016, and 1.1038. We see that the SSI continues to forecast USDCHF rallies, as the ratio of long to short positions in the pair currently stands at -1.64; 62 percent of traders are currently short the pair. We likewise see that forex trading crowds scaled back long positions, as USDCHF-buy orders fell 10.5 percent overnight. The SSI is a contrarian indicator and signals more USDCHF gains.

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