Forex Bull

EURGBP is our Trend for the Day

Forex traders pushed the Australian dollar higher despite a hefty 1.00% interest rate cut as the RBA signaled it was done lowering borrowing costs for the time being. Inflation data is on tap for European hours with Euro Zone Producer Prices and Swiss Consumer Prices set for release.

What does the appointment of New York Federal Reserve President Timothy Geithner as Treasury Secretary mean to forex traders? To answer this question, it depends on which side of the Dollar you fall in. Geithner worked in the Treasury Department under Bill Clinton, which means he is well versed in the Strong Dollar policy

Tue, 02th of December, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD continued it’s bearish scenario yesterday. The pair bottomed at 1.2585 and closed at 1.2616 . The bias remains to the downside in nearest term targeting 1.2430 area.

Here’s the video for tonight. One topic I discuss is why I sold my inverse ETFs today, although I am completely aware that we could fall another 4-5% tomorrow very easily with no bounce. Anything is possible in this market.

The RBA is expected to cut their benchmark rate by 75 bps at their policy meeting as the Australian economy is heading toward a recession. There has been some speculation that the central bank has some concerns that if they lower interest rates too far that upside inflation risks will re-emerge.

Fresh concerns about the global economy have triggered sharp gains in the US dollar and the Japanese yen. Risk aversion continues to seep through the markets as the National Bureau of Economic Research finally admits that the US economy fell into recession in December 2007

With the recession in the UK economy in full swing and the Bank of England scheduled to cut interest rates this week, further weakness in the British pound was expected. However not many people could have anticipated the degree of the sell-off that we saw in the British pound today.

The stock market suffered one of its worst days since the financial meltdown Monday, slicing 680 points off the Dow Jones industrial average as Wall Street snapped out of its daydream of a rally and once again faced the harsh reality of a recession.

After consolidating below 1.55 last week, the British pound plunged more than 400 points on Monday amidst mounting speculation that the Bank of England will cut rates aggressively on Thursday and as business activity in the UK manufacturing sector fell to a 16-year low.